OR Spectrum

, Volume 35, Issue 4, pp 807–834 | Cite as

A stochastic programming approach to determine robust delivery profiles in area forwarding inbound logistics networks

Regular Article

Abstract

One technique to coordinate the suppliers’ and the producers’ production plans in a supply chain is the use of delivery profiles, which provide fixed delivery frequencies for all suppliers. The selection of a delivery profile assignment has major effects on the cost efficiency and the robustness of a supply chain and thus should be performed carefully. In this work, we consider planning approaches to select delivery profiles for the case of area forwarding-based inbound logistics networks, which are commonly used in several industries to consolidate supplies in an early stage of transport. We present a two-stage stochastic mixed integer linear programming model to determine robust delivery profile assignments under uncertain and infrequent demands and complex tariff systems. The model is embedded into a solution framework consisting of scenario generation and reduction techniques, a decomposition approach, a genetic algorithm, and a standard MILP solver. On the basis of an industrial case study, we show that our approach is computationally feasible and that the planning solutions obtained by our model outperform both a deterministic approach and the planning methodology prevailing in industrial practice.

Keywords

Procurement planning Delivery profiles Automotive industry Stochastic programming model 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Universität PaderbornPaderbornGermany
  2. 2.Goethe Universität FrankfurtFrankfurt am MainGermany

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