Lecture Notes in Economics and Mathematical Systems

A location-inventory problem (LIP) aims to integrate strategic supply chain design decisions with tactical and operational inventory management decisions. This study provides an extensive review of the existing literature of LIP modelling. A mathematical model is presented for a basic LIP, which can be further developed to incorporate additional features for use in real-world scenarios. We also discuss the evolution of LIP modelling literature over the past three decades and provide summary tables outlining characteristics of the published works including key modelling attributes and objective function cost components. Additional classifications are completed based on the solution methods adopted and real-world applications investigated. Our observations provide important insights and identify potential directions for future research in the field.

Location-inventory problem in supply chains: a modeling review

Purpose – The purpose of this paper is to systematically and critically review the extant literature on the design of global production and distribution networks to identify gaps in the literature and identify future research opportunities. The design aspects deal with strategic and structural decisions such as: opening or closing of manufacturing plants or distribution centres, selection of locations for manufacturing or warehousing, and making substantial capacity changes in manufacturing or distribution. Design/methodology/approach – The authors examine the peer-reviewed literature on global production and distribution networks written in English. The search strategy is based on selected keywords and databases. The authors identify 109 articles from 1974 to 2012. Findings – The authors categorize the literature according to research methodology: case studies, conceptual modelling, surveys, and mathematical modelling. The amount of literature up to 2,000 is rather sparse, while there is a positive trend...

Design of global production and distribution networks: A literature review and research agenda

Purpose – The purpose of this paper is to systematically and critically review the extant literature on the design of global production and distribution networks to identify gaps in the literature and identify future research opportunities. The design aspects deal with strategic and structural decisions such as: opening or closing of manufacturing plants or distribution centres, selection of locations for manufacturing or warehousing, and making substantial capacity changes in manufacturing, distribution or transportation. Design/methodology/approach – We examine the peer-reviewed literature on global production and distribution networks written in English. The search strategy is based on selected keywords and databases. We identify 109 articles from 1974 to 2012. Findings – We categorize the literature according to research methodology: case studies, conceptual modelling, surveys, and mathematical modelling. The amount of literature up to 2000 is rather sparse, while there is a positive trend from 2000 and onwards. The content analysis shows that different research methodologies focus on different but complementary aspects. We propose a research agenda for further research on design of global production and distribution networks. Research limitations/implications – We identify research opportunities related to complementary actor perspectives, extended supply chains that explicitly include transportation and suppliers, contingency factors, and new perspectives such as plant roles within production and distribution networks. Original/value – This paper is to our knowledge the first broad review that investigates the design aspects of the interrelationships between production and distribution facilities as well as transportation in global production and distribution networks across multiple research methodologies. (Less)

The combination of climate change, rampant urbanization, political and social instabilities, is expected to increase the frequency and ferocity of humanitarian crises in the near future. Unpredictability of demand, narrow lead times, highly chaotic and rapidly changing circumstances demand for a different approach to disaster management. The traditional event-based approach to manage natural hazards is, in fact, no longer economically viable, and it should be transformed into a risk-based management slant with a strong emphasis on planning, in preparedness. This paper is an attempt in that direction and proposes an integration of multi-criteria decision-making, network optimization, and discrete event simulation, to address inventory prepositioning for improving efficiency, effectiveness, and agility of relief chains. While humanitarian logistics has been traditionally relying on the sole practical experience of practitioners, this paper makes a case for a paradigm shift as it proposed an interdisciplinary approach integrating that practical experience with analytical and dynamic simulation methods that have been widely applied in the commercial supply chain arena. A real-life case study about Indonesia, one of the countries with the highest disaster risk exposure on a global scale, has been investigated with the use of anyLogistix software. The findings of this work depict the ideal network configuration along with transportation and inventory policies for the case at hand.

Integrated decision support framework for enhancing disaster preparedness: A pilot application in Indonesia

In this article, we present a case study in a complex and diversified multinational steel company using a deterministic formulation for a capacitated location problem based on a model discussed in the literature. The objective is to determine the quantity and location of distribution centres needed to serve a customer base within specified service levels. A large amount of data about the existing distribution network is gathered and modelled. A decision support system based on mixed-integer programming was used to solve the problem. One of the main contributions of this article concerns the manipulation of a large real database to extract enough information to obtain an acceptable model to solve a complex problem of a steel industry based on adaptations and improvements of a model offered in the literature.

The facility location problem in the steel industry: a case study in Latin America

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The facility location problem in the steel industry: a case study in Latin America