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Title:

Tabu Search for Joint Location–Inventory Problem with Stochastic Inventory Capacity Constraints

Accession Number:

01661011

Record Type:

Component

Abstract:

This paper studies the joint location-inventory on a two-level supply chain where a single plant supplies a single commodity to a set of facilities which serve a set of customers with stochastic demands. The proposed model accounts for the probability of unfulfilled demand during the lead time, the probability of inventory capacity violation, and practicality constraints to eliminate impractical solutions including reorder points close to or higher than inventory capacity and order quantities close to zero. An iterative-nested tabu search heuristic with 100 possible parameter combinations is performed on test problems to identify the best parameter combination. The 30 sets of 20 facility locations with two capacity levels are randomly generated, and Solomon’s four customer sets are employed, yielding 120 base problem instances. The six additional problem sets are constructed by increasing and decreasing demand standard deviation, unit transportation cost and unit holding cost by 50 percent from the base case. The parameter combination of the least-transport-cost customer assignment rule, the complex facility swap type, the random open facility selection rule and the least-estimated-cost close facility selection rule is ranked highest with up to 73.33%, 60% and 50% chance yielding best, second-best or third-best solutions on respective clustered, random and random-clustered customer configuration. The average computational time of each run is less than two seconds on each problem instance. The sensitivity analysis of demand standard deviation, unit transportation cost and unit holding cost is also performed.

Supplemental Notes:

This paper was sponsored by TRB committee AT015 Standing Committee on Freight Transportation Planning and Logistics.

Report/Paper Numbers:

18-00296

Language:

English

Authors:

Punyim, Puntipa
Karoonsoontawong, Ampol
Unnikrishnan, Avinash
Xie, Chi

Pagination:

17p

Publication Date:

2018

Conference:

Transportation Research Board 97th Annual Meeting

Location: Washington DC, United States
Date: 2018-1-7 to 2018-1-11
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Subject Areas:

Freight Transportation; Planning and Forecasting; Terminals and Facilities

Source Data:

Transportation Research Board Annual Meeting 2018 Paper #18-00296

Files:

TRIS, TRB, ATRI

Created Date:

Jan 8 2018 10:05AM