A lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design

Ali Diabat, Jean Philippe Richard, Craig W. Codrington

Research output: Contribution to journalArticlepeer-review

76 Scopus citations

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.

Original languageEnglish (US)
Pages (from-to)55-80
Number of pages26
JournalAnnals of Operations Research
Volume203
Issue number1
DOIs
StatePublished - Mar 2013
Externally publishedYes

Bibliographical note

Funding Information:
The Robert Wood Johnson Foundation supported Dr. Langa as a Robert Wood Johnson Clinical Scholar during part of the time that this work was performed. Additional support was provided by grants from the Michigan Alzheimer’s Disease Research Center, Michigan Center on the Demography of Aging, Aetna Quality Care Research Fund, and Merck and Company, Inc. The National Institute on Aging provided funding for the Asset and Health Dynamics (AHEAD) Study (No. U01 AG09740), data from which were used in this analysis

Keywords

  • Facility location
  • Joint inventory-location
  • Lagrangian relaxation
  • Supply chain management

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