Supply Chain Management

Toward breaking the curse of dimensionality: an FPTAS for stochastic dynamic programs with multidimensional action and scalar state

  • Nir Halman
  • Giacomo Nannicini
    • Categories Approximation Algorithms, Dynamic Programming, Supply Chain Management Tags , , , ,

    We propose a Fully Polynomial-Time Approximation Scheme (FPTAS) for stochastic dynamic programs with multidimensional action, scalar state, convex costs and linear state transition function. The action spaces are polyhedral and described by parametric linear programs. This type of problems finds applications in the area of optimal planning under uncertainty, and can be thought of as … Read more

    Coordination of a two-level supply chain with contracts under complete or asymmetric information

  • Safia Kedad-Sidhoum
  • Fanny Pascual
  • Siao-Leu Phouratsamay
    • Categories Dynamic Programming, Supply Chain Management Tags , , , , ,

    We consider the coordination of planning decisions of a single product in a supply chain composed of one supplier and one retailer by using contracts. We assume that the retailer has the market power to impose his optimal replenishment plan to the supplier. Our concern is on the minimization of the supplier’s cost. In order … Read more

    Tackling Industrial-Scale Supply Chain Problems by Mixed-Integer Programming

  • Gerald Gamrath
  • Ambros Gleixner
  • Thorsten Koch
  • Matthias Miltenberger
  • Dieter Weninger
  • Dimitri Kniasew
  • Alexander Martin
  • Dominik Schlögel
    • Categories (Mixed) Integer Linear Programming, Supply Chain Management Tags , , , , ,

    SAP’s decision support systems for optimized supply network planning rely on mixed-integer programming as the core engine to compute optimal or near-optimal solutions. The modeling flexibility and the optimality guarantees provided by mixed-integer programming greatly aid the design of a robust and future-proof decision support system for a large and diverse customer base. In this … Read more

    The Dynamic Dispatch Waves Problem for Same-Day Delivery

  • Alan L. Erera
  • Mathias A. Klapp
  • Alejandro Toriello
    • Categories Applications - OR and Management Sciences, Supply Chain Management, Transportation Tags , ,

    We study same-day delivery systems by formulating the Dynamic Dispatch Waves Problem (DDWP), which models a distribution center where geographically located delivery orders realize dynamically throughout the day. At each decision epoch (wave), the system’s operator chooses whether or not to dispatch a vehicle route loaded with orders ready for service, to minimize vehicle travel … Read more

    Designing Response Supply Chain Against Bioattacks

  • David Simchi-Levi
  • Peter Yun Zhang
  • Nikolaos Trichakis
    • Categories Applications - OR and Management Sciences, Robust Optimization, Supply Chain Management

    Bioattacks, i.e., the intentional release of pathogens or biotoxins against humans to cause serious illness and death, pose a significant threat to public health and safety due to the availability of pathogens worldwide, scale of impact, and short treatment time window. In this paper, we focus on the problem of prepositioning inventory of medical countermeasures … Read more

    The Stochastic Multistage Fixed Charge Transportation Problem: Worst-Case Analysis of the Rolling Horizon Approach

  • Luca Bertazzi
  • Francesca Maggioni
    • Categories Stochastic Programming, Supply Chain Management Tags , , ,

    We introduce the Stochastic multistage fixed charge transportation problem in which a producer has to ship an uncertain load to a customer within a deadline. At each time period, a fixed transportation price can be paid to buy a transportation capacity. If the transportation capacity is used, the supplier also pays an uncertain unit transportation … Read more

    Decomposition-Based Approximation Algorithms for the One-Warehouse Multi-Retailer Problem with Concave Batch Order Costs

  • Maged M. Dessouky
  • Weihong Hu
  • Alejandro Toriello
  • Zhuoting Yu
    • Categories Approximation Algorithms, Production and Logistics, Supply Chain Management Tags , ,

    We study the one-warehouse multi-retailer (OWMR) problem under deterministic dynamic demand and concave batch order costs, where order batches have an identical capacity and the order cost function for each facility is concave within the batch. Under appropriate assumptions on holding cost structure, we obtain lower bounds via a decomposition that splits the two-echelon problem … Read more

    Moulin Mechanism Design for Freight Consolidation

  • Maged M. Dessouky
  • Alejandro Toriello
  • Nelson A. Uhan
  • Wentao Zhang
    • Categories Game Theory, Supply Chain Management, Transportation

    In freight consolidation, a “fair” cost allocation scheme is critical for forming and sustaining horizontal cooperation that leads to reduced transportation cost. We study a cost-sharing problem in a freight consolidation system with one consolidation center and a common destination. In particular, we design a mechanism that collects bids from a set of suppliers, and … Read more

    Evaluating the effect of environmental regulations on a closed-loop supply chain network: a variational inequality approach

  • Elisabetta Allevi
  • Igor V. Konnov
  • Adriana Gnudi
  • Giorgia Oggioni
    • Categories Complementarity and Variational Inequalities, Supply Chain Management

    Global climate change has encouraged international and regional adoption of pollution taxes and carbon emission reduction policies. Europe has taken the leadership in environmental regulations by introducing the European Union Emissions Trading System (EU-ETS) in 2005 and by developing and promoting a set of policies destined to lower carbon emissions from transport sectors. These environmental … Read more

    Bulk Ship Fleet Renewal and Deployment under Uncertainty: A Multi-Stage Stochastic Programming Approach

  • Ayse Nur Arslan
  • Dimitri J. Papageorgiou
    • Categories Stochastic Programming, Supply Chain Management, Transportation Tags , , , , ,

    We study a maritime fleet renewal and deployment problem under demand and charter cost uncertainty. A decision-maker for an industrial bulk shipping company must determine a suitable fleet size, mix, and deployment strategy to satisfy stochastic demand over a given planning horizon. She may acquire vessels in two ways: time chartering and voyage chartering. Time … Read more