Network design for cylinder gas distribution

<div class="WordSection1"><p><strong>Purpose:</strong> Network design of the supply chain is an important and strategic aspect of logistics management. In this paper, we address the network design problem specific to packaged gases (cylinder) supply chain. We propos...

Full description

Bibliographic Details
Main Authors: Tejinder Pal Singh, Nicoleta Neagu, Michele Quattrone, Philippe Briet
Format: Article
Language:English
Published: OmniaScience 2015-01-01
Series:Journal of Industrial Engineering and Management
Subjects:
Online Access:http://www.jiem.org/index.php/jiem/article/view/1140
_version_ 1818268953355485184
author Tejinder Pal Singh
Nicoleta Neagu
Michele Quattrone
Philippe Briet
author_facet Tejinder Pal Singh
Nicoleta Neagu
Michele Quattrone
Philippe Briet
author_sort Tejinder Pal Singh
collection DOAJ
description <div class="WordSection1"><p><strong>Purpose:</strong> Network design of the supply chain is an important and strategic aspect of logistics management. In this paper, we address the network design problem specific to packaged gases (cylinder) supply chain. We propose an integrated framework that allows for the determination of the optimal facility locations, the filling plant production capacities, the inventory at plants and hubs, and the number of packages to be routed in primary and secondary transportation.</p> <p><strong>Design/methodology/approach:</strong> We formulate the problem as a mixed integer program and then develop a decomposition approach to solve it. We illustrate the proposed framework with numerical examples from real-life packaged gases supply chain. The results show that the decomposition approach is effective in solving a broad range of problem sizes.</p> <p><strong>Findings:</strong> The main finding of this paper is that decomposing the network design problem into two sub-problems is very effective to tackle the real-life large scale network design problems occurring in cylinder gas distribution by optimizing strategic and tactical decisions and approximating the operational decisions. We also benchmark the results from the decomposition approach by solving the complete packaged gases network design model for smaller test cases.</p> <p><strong>Originality/value:</strong> The main contribution of our work is that it integrates supply chain network design decisions without fixing the fillings plant locations with inventory and resource allocation decisions required at the plants. We also consider the transportation costs for the entire supply chain including the transhipment costs among different facilities by deciding the replenishment frequency.</p></div>
first_indexed 2024-12-12T20:46:41Z
format Article
id doaj.art-21cb8306b1aa4994a10383ff2bf53d3c
institution Directory Open Access Journal
issn 2013-8423
2013-0953
language English
last_indexed 2024-12-12T20:46:41Z
publishDate 2015-01-01
publisher OmniaScience
record_format Article
series Journal of Industrial Engineering and Management
spelling doaj.art-21cb8306b1aa4994a10383ff2bf53d3c2022-12-22T00:12:34ZengOmniaScienceJournal of Industrial Engineering and Management2013-84232013-09532015-01-01818510910.3926/jiem.1140323Network design for cylinder gas distributionTejinder Pal Singh0Nicoleta Neagu1Michele Quattrone2Philippe Briet3Air LiquideAir LiquideAir LiquideAir Liquide<div class="WordSection1"><p><strong>Purpose:</strong> Network design of the supply chain is an important and strategic aspect of logistics management. In this paper, we address the network design problem specific to packaged gases (cylinder) supply chain. We propose an integrated framework that allows for the determination of the optimal facility locations, the filling plant production capacities, the inventory at plants and hubs, and the number of packages to be routed in primary and secondary transportation.</p> <p><strong>Design/methodology/approach:</strong> We formulate the problem as a mixed integer program and then develop a decomposition approach to solve it. We illustrate the proposed framework with numerical examples from real-life packaged gases supply chain. The results show that the decomposition approach is effective in solving a broad range of problem sizes.</p> <p><strong>Findings:</strong> The main finding of this paper is that decomposing the network design problem into two sub-problems is very effective to tackle the real-life large scale network design problems occurring in cylinder gas distribution by optimizing strategic and tactical decisions and approximating the operational decisions. We also benchmark the results from the decomposition approach by solving the complete packaged gases network design model for smaller test cases.</p> <p><strong>Originality/value:</strong> The main contribution of our work is that it integrates supply chain network design decisions without fixing the fillings plant locations with inventory and resource allocation decisions required at the plants. We also consider the transportation costs for the entire supply chain including the transhipment costs among different facilities by deciding the replenishment frequency.</p></div>http://www.jiem.org/index.php/jiem/article/view/1140Network Design, Optimization, Location-Routing, Packaged Gases, Inventory Management, Decomposition Approach, Heuristics, Mixed Integer Linear Programming Model.
spellingShingle Tejinder Pal Singh
Nicoleta Neagu
Michele Quattrone
Philippe Briet
Network design for cylinder gas distribution
Journal of Industrial Engineering and Management
Network Design, Optimization, Location-Routing, Packaged Gases, Inventory Management, Decomposition Approach, Heuristics, Mixed Integer Linear Programming Model.
title Network design for cylinder gas distribution
title_full Network design for cylinder gas distribution
title_fullStr Network design for cylinder gas distribution
title_full_unstemmed Network design for cylinder gas distribution
title_short Network design for cylinder gas distribution
title_sort network design for cylinder gas distribution
topic Network Design, Optimization, Location-Routing, Packaged Gases, Inventory Management, Decomposition Approach, Heuristics, Mixed Integer Linear Programming Model.
url http://www.jiem.org/index.php/jiem/article/view/1140
work_keys_str_mv AT tejinderpalsingh networkdesignforcylindergasdistribution
AT nicoletaneagu networkdesignforcylindergasdistribution
AT michelequattrone networkdesignforcylindergasdistribution
AT philippebriet networkdesignforcylindergasdistribution