The design of logistics networks is one of the most important areas of application for multicommodity network design models. Logistics networks (or supply chains) connect suppliers, manufacturing plants, warehouses, distribution centers and customers to coordinate the acquisition of raw materials and components, their transformation into finished products and the delivery of these products to the customers. Over the last 40 years, the realism of logistics network design models has greatly improved and efficient solution methods have been developed to solve these models. There is now a vast literature on the topic with a very large number of models addressing the many problem variants encountered in practice. This chapter provides a general modeling framework that can be used to express many of these variants and gives a brief overview of the main solution methodologies. It also discusses two important and recent trends: the treatment of risk and uncertainty in the design of logistics networks and the incorporation of environmental, sustainability and reverse logistics aspects.
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Cordeau, JF., Klibi, W., Nickel, S. (2021). Logistics Network Design. In: Crainic, T.G., Gendreau, M., Gendron, B. (eds) Network Design with Applications to Transportation and Logistics. Springer, Cham. https://doi.org/10.1007/978-3-030-64018-7_19
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