© 2015 Elsevier Ltd. This paper analyzes the design of a distribution network for fast-moving items able to provide differentiated service levels in terms of product availability for two demand classes (high and low priority) using a critical level policy. The model is formulated as a MINLP with chance constraints for which we propose a heuristic to solve it. Although the heuristic does not guarantee an optimal solution, our computational experiments have shown that it provides good-quality solutions that are on average 0.8% and at worst 2.7% from the optimal solution.
|Number of pages||17|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|Publication status||Published - 1 Nov 2015|
Escalona, P., Ordóñez, F., & Marianov, V. (2015). Joint location-inventory problem with differentiated service levels using critical level policy. Transportation Research Part E: Logistics and Transportation Review, 141-157. https://doi.org/10.1016/j.tre.2015.09.009