An optimization approach for a joint location inventory model considering quantity discount policy
Joint location inventory problems involve determination of two key decisions in a supply chain network: inventory control decisions and facility location decisions. This paper addresses a supply chain network consisting of a supplier and a set of retailers, in which a number of distribution centers...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Springer
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28863/1/An%20optimization%20approach%20for%20a%20joint%20location%20inventory%20model%20considering%20quantity%20discount%20policy.pdf |
| _version_ | 1825947399518945280 |
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| author | Firoozi, Zahra Tang, Sai Hong Ariafar, Shahram Mohd Ariffin, Mohd Khairol Anuar |
| author_facet | Firoozi, Zahra Tang, Sai Hong Ariafar, Shahram Mohd Ariffin, Mohd Khairol Anuar |
| author_sort | Firoozi, Zahra |
| collection | UPM |
| description | Joint location inventory problems involve determination of two key decisions in a supply chain network: inventory control decisions and facility location decisions. This paper addresses a supply chain network consisting of a supplier and a set of retailers, in which a number of distribution centers (DCs) are to be located. The objectives of a joint location inventory problem are to identify the optimal number and location of the DCs, the assignment of the retailers to the DCs and determining the inventory control decision of the DCs so that the total cost is minimized. This paper extends the traditional joint location inventory model that considers the basic EOQ policy to replenish the inventory of retailers, by considering quantity discount as the inventory policy of the supply chain network. The new model can be applied to both EOQ and quantity discount policies. An efficient two-stage heuristic algorithm is developed to solve the model. Numerical experiments show the efficiency of the proposed algorithm. |
| first_indexed | 2024-03-06T08:12:47Z |
| format | Article |
| id | upm.eprints-28863 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T08:12:47Z |
| publishDate | 2013 |
| publisher | Springer |
| record_format | dspace |
| spelling | upm.eprints-288632015-09-18T07:38:58Z http://psasir.upm.edu.my/id/eprint/28863/ An optimization approach for a joint location inventory model considering quantity discount policy Firoozi, Zahra Tang, Sai Hong Ariafar, Shahram Mohd Ariffin, Mohd Khairol Anuar Joint location inventory problems involve determination of two key decisions in a supply chain network: inventory control decisions and facility location decisions. This paper addresses a supply chain network consisting of a supplier and a set of retailers, in which a number of distribution centers (DCs) are to be located. The objectives of a joint location inventory problem are to identify the optimal number and location of the DCs, the assignment of the retailers to the DCs and determining the inventory control decision of the DCs so that the total cost is minimized. This paper extends the traditional joint location inventory model that considers the basic EOQ policy to replenish the inventory of retailers, by considering quantity discount as the inventory policy of the supply chain network. The new model can be applied to both EOQ and quantity discount policies. An efficient two-stage heuristic algorithm is developed to solve the model. Numerical experiments show the efficiency of the proposed algorithm. Springer 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28863/1/An%20optimization%20approach%20for%20a%20joint%20location%20inventory%20model%20considering%20quantity%20discount%20policy.pdf Firoozi, Zahra and Tang, Sai Hong and Ariafar, Shahram and Mohd Ariffin, Mohd Khairol Anuar (2013) An optimization approach for a joint location inventory model considering quantity discount policy. Arabian Journal for Science and Engineering, 38 (4). pp. 983-991. ISSN 1319-8025; ESSN: 2191-4281 10.1007/s13369-012-0360-9 |
| spellingShingle | Firoozi, Zahra Tang, Sai Hong Ariafar, Shahram Mohd Ariffin, Mohd Khairol Anuar An optimization approach for a joint location inventory model considering quantity discount policy |
| title | An optimization approach for a joint location inventory model considering quantity discount policy |
| title_full | An optimization approach for a joint location inventory model considering quantity discount policy |
| title_fullStr | An optimization approach for a joint location inventory model considering quantity discount policy |
| title_full_unstemmed | An optimization approach for a joint location inventory model considering quantity discount policy |
| title_short | An optimization approach for a joint location inventory model considering quantity discount policy |
| title_sort | optimization approach for a joint location inventory model considering quantity discount policy |
| url | http://psasir.upm.edu.my/id/eprint/28863/1/An%20optimization%20approach%20for%20a%20joint%20location%20inventory%20model%20considering%20quantity%20discount%20policy.pdf |
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