TY - JOUR
T1 - The hybrid planning algorithm for the distribution center operation using tabu search and decomposed optimization
AU - Lee, Young Hoon
AU - Kwon, Soon Geol
N1 - Copyright:
Copyright 2009 Elsevier B.V., All rights reserved.
PY - 2010/4
Y1 - 2010/4
N2 - Distribution center operation planning problem to determine the facility locations and the distribution plans is studied in this paper under the single sourcing constraint, in which each customer can be served by a single supplier. Distribution centers can be installed or changed easily using the outsourcing with a reasonable setup cost, to meet the dynamically changing demand of customers, compared with the plants which are usually run for the long time period with a heavy setup cost. The objective is to minimize the sum of transportation, the facility setup and the product handling cost. A mixed integer programming model for the distribution center operation planning is suggested. For the purpose of practical implementation, the hybrid heuristic based on the tabu search and the decomposed optimization is proposed with the priority rule designed by using the so-called Unit Cost Ratio (UCR). The performances of the heuristic algorithms are evaluated by the comparison with the optimal solution or the best solutions found within the computational time limit by CPLEX.
AB - Distribution center operation planning problem to determine the facility locations and the distribution plans is studied in this paper under the single sourcing constraint, in which each customer can be served by a single supplier. Distribution centers can be installed or changed easily using the outsourcing with a reasonable setup cost, to meet the dynamically changing demand of customers, compared with the plants which are usually run for the long time period with a heavy setup cost. The objective is to minimize the sum of transportation, the facility setup and the product handling cost. A mixed integer programming model for the distribution center operation planning is suggested. For the purpose of practical implementation, the hybrid heuristic based on the tabu search and the decomposed optimization is proposed with the priority rule designed by using the so-called Unit Cost Ratio (UCR). The performances of the heuristic algorithms are evaluated by the comparison with the optimal solution or the best solutions found within the computational time limit by CPLEX.
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U2 - 10.1016/j.eswa.2009.09.020
DO - 10.1016/j.eswa.2009.09.020
M3 - Article
AN - SCOPUS:71349083207
VL - 37
SP - 3094
EP - 3103
JO - Expert Systems with Applications
JF - Expert Systems with Applications
SN - 0957-4174
IS - 4
ER -