Evaluation of an Integrated Facility Location-Inventory Model Using Lagrangian Relaxation Approach with a FMCG Case Study

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NASIRI GH.; Namazi Tejragh A.; DAVOUDPOUR H.

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: Supply Chain Management Year:2021 | Volume:23 | Issue:71 Page(s): 79-91

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Information Journal Paper

Title

Evaluation of an Integrated Facility Location-Inventory Model Using Lagrangian Relaxation Approach with a FMCG Case Study

Author(s)

NASIRI GH. | Namazi Tejragh A. | DAVOUDPOUR H. | Issue Writer Certificate

Keywords

Facility Location

Inventory Control

Lagrangian Relaxation

Risk Pooling Effect

Case Study

Abstract

Supply chain management and distribution network design have attracted the attention of many researchers during recent years. This paper addresses a multi-product system of location problem in distribution network that incorporates inventory decisions for each product into capacitated Facility Location models. In the development of the mathematical model, the data of real Case Study of fast moving consumer goods company is used. Due to difficulty of obtaining the optimal solution in real-scaled problems, a heuristic solution approach based on Lagrangian Relaxation algorithm and sub-gradient method is presented. The proposed solution method is compared with the optimization software on randomly generated test problems with different size. Computational results show that the performance of proposed solution algorithm is very promising in terms of various indexes including 88. 3% of DCs capacity, duality gap average and the worst case 0. 71% and 1. 77% respectively. The results of considered Case Study also proposed to reduce the number of distribution centers from 17 to 12 centers. Finally, some managerial insights are mentioned.

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APA: Copy

NASIRI, GH., Namazi Tejragh, A., & DAVOUDPOUR, H.. (2021). Evaluation of an Integrated Facility Location-Inventory Model Using Lagrangian Relaxation Approach with a FMCG Case Study. IRANIAN JOURNAL OF SUPPLY CHAIN MANAGEMENT, 23(71 ), 79-91. SID. https://sid.ir/paper/986703/en

Vancouver: Copy

NASIRI GH., Namazi Tejragh A., DAVOUDPOUR H.. Evaluation of an Integrated Facility Location-Inventory Model Using Lagrangian Relaxation Approach with a FMCG Case Study. IRANIAN JOURNAL OF SUPPLY CHAIN MANAGEMENT[Internet]. 2021;23(71 ):79-91. Available from: https://sid.ir/paper/986703/en

IEEE: Copy

GH. NASIRI, A. Namazi Tejragh, and H. DAVOUDPOUR, “Evaluation of an Integrated Facility Location-Inventory Model Using Lagrangian Relaxation Approach with a FMCG Case Study,” IRANIAN JOURNAL OF SUPPLY CHAIN MANAGEMENT, vol. 23, no. 71 , pp. 79–91, 2021, [Online]. Available: https://sid.ir/paper/986703/en

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