Optimization of urban distribution centres: a multi-stage dynamic location approach

Customer demand is dynamic and changeable; thus, optimality of the enterprise’s initial location cannot be guaranteed throughout the planning period in order to minimize site selection cost and maximize service reliability in the whole operation cycle. The enterprise planning period is divided into different stages, and a static location model is established at the fixed stage. In addition, a multi-stage dynamic location model is established by introducing the transfer cost between adjacent stages. To reduce the difficulty of solving the dynamic location model, first, we determined the optimal site selection and allocation strategy for each stage. Second, we designed a novel method that transforms the multi-stage dynamic location problem into the shortest path problem in graph theory. Finally, the Dijkstra algorithm was used to find the optimal dynamic location sequence so that its cumulative cost was the lowest in the whole planning period. Through a case study in China, we compare the costs of static and dynamic locations and the location cost under different objectives. The results show that this dynamic location generates more income (as it reduces cost) in comparison to the previous static location, and different location objectives have a substantial influence on location results. At the same time, the findings indicate that exploring the problem of enterprise location from a dynamic perspective could help reduce the operating cost and resources from a sustainable development perspective.Postprint (published version

Influence of the Demand Planning Process on Logistic System Reliability. Case Study

Authors define the main elements affecting the right logistic system performance level and investigate the possible connections between demand process planning quality and logistic system reliability. Thus, known in the literature definitions of logistic system reliability are characterized. Later, an overview of some recent developments in the analyzed research area is provided. In the next point, authors present the main elements affecting the reliable and available logistic system performance. Finally, the paper is ended by the presentation of the obtained analysis results in comparison with the knowledge about the case companies' present condition

Modeling and optimization of supply chain cost of responsiveness

In today\u27s ever increasing competitive business world, a responsive Supply Chain (SC) should adapt itself quickly to customer demands resulting into maximum benefits to all its primary stakeholders. The objective of this work is to provide a managerial tool that optimizes the cost of responsiveness of supply chains where various transportation durations are present between the SC components, and to determine the weakest links in the SC that need strengthening for elevating the overall responsiveness. For these objectives a mathematical model was formulated and solved using CPLEX. Assessing supply chain\u27s responsiveness is discussed in this work as well using the cost of responsiveness, SC output rate and production slack times. The computational results show that the mathematical model is effective in planning and synchronizing production, shipping and storage in a supply chain from start to end so that the cost of responsiveness is minimized while customer demands are fulfilled under limited outsourcing

Modeling and Optimization of Resource Allocation in Supply Chain Management Problems

Resource allocation in supply chain management studies how to allocate the limited available resources economically/optimally to satisfy the demands. It is an important research area in operations research. This dissertation focuses on the modeling and optimization of three problems. The first part of the dissertation investigates an important and unique problem in a supply chain distribution network, namely minimum cost network flow with variable lower bounds (MCNF-VLB). This type of network can be used to optimize the utilization of distribution channels (i.e., resources) in a large supply network, in order to minimize the total cost while satisfying flow conservation, lower and upper bounds, and demand/supply constraints. The second part of the dissertation introduces a novel method adopted from multi-product inventory control to optimally allocate the cache space and the frequency (i.e., resources) for multi-stream data prefetching in computer science. The objective is to minimize the cache miss level (backorder level), while satisfying the cache space (inventory space) and the total prefetching frequency (total order frequency) constraints. Also, efforts have also been made to extend the model for a multi-level, multi-stream prefetching system. The third part of the dissertation studies the joint capacity (i.e., resources) and demand allocation problem in a service delivery network. The objective is to minimize the total cost while satisfying a required service reliability, which measures the probability of satisfying customer demand within a delivery time interval