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, Volume 22, Issue 1, pp 80–108 | Cite as

An efficient heuristic approach for a multi-period logistics network redesign problem

Original Paper

Abstract

In this paper, a multi-period logistics network redesign problem arising in the context of strategic supply chain planning is studied. Several aspects of practical relevance are captured, namely, multiple echelons with different types of facilities, product flows between facilities in the same echelon, direct shipments to customers, and facility relocation. A two-phase heuristic approach is proposed to obtain high-quality feasible solutions to the problem, which is initially modeled as a large-scale mixed-integer linear program. In the first phase of the heuristic, a linear programming rounding strategy is applied to find initial values for the binary location variables. The second phase of the heuristic uses local search to correct the initial variable choices when a feasible solution is not identified, or to improve the initial feasible solution when its quality does not meet given criteria. The results of a computational study are reported for randomly generated instances comprising a variety of logistics networks.

Keywords

Logistics network redesign Heuristic Linear programming Rounding Local search 

Mathematics Subject Classification (2000)

90B06 90B80 90C06 90C11 90C59 

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Copyright information

© Sociedad de Estadística e Investigación Operativa 2011

Authors and Affiliations

  1. 1.Business SchoolSaarland University of Applied SciencesSaarbrückenGermany
  2. 2.Fraunhofer Institute for Industrial Mathematics and Institute for Operations ResearchKarlsruhe Institute of TechnologyKarlsruheGermany
  3. 3.Department of Statistics and Operations Research, and Operations Research CenterUniversity of LisbonLisbonPortugal

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