Joint location-inventory problem with differentiated service levels using critical level policy

P. Escalona, F. Ordóñez, V. Marianov

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

© 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.
Original languageEnglish
Pages (from-to)141-157
Number of pages17
JournalTransportation Research Part E: Logistics and Transportation Review
DOIs
Publication statusPublished - 1 Nov 2015

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