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Designing Supply Chains Using Optimization
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Author(s): Jairo R. Montoya-Torres (Universidad de La Sabana, Colombia and University of Leeds, UK)
Copyright: 2014
Pages: 11
Source title:
Encyclopedia of Business Analytics and Optimization
Source Author(s)/Editor(s): John Wang (Montclair State University, USA)
DOI: 10.4018/978-1-4666-5202-6.ch068
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Abstract
Part of the planning process in supply chain management consists of finding the best possible configuration, including the definition of product flow from plants to clients (markets) via a set of warehouses. Defining the location of such warehouses is also part of the decision-making problem. This problem is known in the literature as the two-echelon uncapacitated facility location problem (TUFLP) and is known to be NP-hard. This chapter aims at solving this problem using optimization methods baesd on approximate algorithms. Their performance is analyzed using well-known date sets from the academic literature.
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