Abstract
We study a multi-echelon joint inventory-location model that simultaneously determines the location of warehouses and inventory policies at the warehouses and retailers. The model is formulated as a nonlinear mixed-integer program, and is solved using a Lagrangian relaxation-based approach. The efficiency of the algorithm and benefits of integration are evaluated through a computational study.
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Diabat, A., Richard, JP. & Codrington, C.W. A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design. Ann Oper Res 203, 55–80 (2013). https://doi.org/10.1007/s10479-011-0915-2
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DOI: https://doi.org/10.1007/s10479-011-0915-2