supply chain management

Analysis and discussion of single and multi-objective IP formulations for the Truck-to-dock Door Assignment Problem

  • Xavier Gandibleux
  • Nicolas Forget
    • Categories Applications - OR and Management Sciences, Integer Programming, Multi-Criteria Optimization Tags , , , ,

    This paper is devoted to the Truck-to-dock Door Assignment Problem. Two integer programming formulations introduced after 2009 are examined. Our review of the literature takes note of the criticisms and limitations addressed to the seminal work of 2009. Although the published adjustments that followed present strong argument and technical background, we have identified several errors, … Read more

    A diving heuristic for mixed-integer problems with unbounded semi-continuous variables

  • Katrin Halbig
  • Alexander Hoen
  • Ambros Gleixner
  • Jakob Witzig
  • Dieter Weninger
    • Categories Integer Programming Tags , , , ,

    Semi-continuous decision variables arise naturally in many real-world applications. They are defined to take either value zero or any value within a specified range, and occur mainly to prevent small nonzero values in the solution. One particular challenge that can come with semi-continuous variables in practical models is that their upper bound may be large … Read more

    Exploiting user-supplied Decompositions inside Heuristics

  • Katrin Halbig
  • Adrian Göß
  • Dieter Weninger
    • Categories Integer Programming Tags , , , ,

    Numerous industrial fields, like supply chain management, face mixed-integer optimization problems on a regular basis. Such problems typically show a sparse structure and vary in size, as well as complexity. However, in order to satisfy customer demands, it is crucial to find good solutions to all such problems quickly. Current research often focuses on the … Read more

    Coordination of a two-level supply chain with contracts

  • Safia Kedad-Sidhoum
  • Fanny Pascual
  • Siao-Leu Phouratsamay
    • Categories Dynamic Programming, Production and Logistics, 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: he can impose his optimal replenishment plan to the supplier. Our aim is to minimize the supplier’s cost without increasing the … 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

    Time (in)consistency of multistage distributionally robust inventory models with moment constraints

  • David A. Goldberg
  • Linwei Xin
    • Categories Stochastic Programming Tags , , , , , , , ,

    Recently, there has been a growing interest in developing inventory control policies which are robust to model misspecification. One approach is to posit that nature selects a worst-case distribution for any relevant stochastic primitives from some pre-specified family. Several communities have observed that a subtle phenomena known as time inconsistency can arise in this framework. … Read more

    A Multi-Product Risk-Averse Newsvendor with Exponential Utility Function

  • Sungyong Choi
  • Andrzej Ruszczyński
    • Categories Production and Logistics, Supply Chain Management Tags , ,

    We consider a multi-product newsvendor using an exponential utility function. We first establish a few basic properties for the newsvendor regarding the convexity of the model and monotonicity of the impact of risk aversion on the solution. When the product demands are independent and the ratio of the degree of risk aversion to the number … Read more

    Exact and heuristic solutions of the global supply chain problem with transfer pricing

  • Pierre Hansen
  • Sébastien Le Digabel
  • Sylvain Perron
  • Nenad Mladenovic
    • Categories Applications - OR and Management Sciences, Nonlinear Optimization, Supply Chain Management Tags , , , , ,

    We examine the example of a multinational corporation that attempts to maximize its global after tax profits by determining the flow of goods, the transfer prices, and the transportation cost allocation between each of its subsidiaries. Vidal and Goetschalckx (2001) proposed a bilinear model of this problem and solved it by an Alternate heuristic. We … Read more

    Integer Programming Solution Approach for Inventory-Production-Distribution Problems with Direct Shipments

  • Miguel A. Lejeune
  • François Margot
    • Categories Branch and Cut Algorithms, Cutting Plane Approaches, Supply Chain Management Tags , , ,

    We construct an integrated multi-period inventory-production-distribution replenishment plan for three-stage supply chains. The supply chain maintains close-relationships with a small group of suppliers, and the nature of the products (bulk, chemical, etc.) makes it more economical to rely upon a direct shipment, full-truck load distribution policy between supply chain nodes. In this paper, we formulate … Read more

    A Robust Optimization Framework for Analyzing Distribution Systems with Transshipment

  • Mabel C. Chou
  • Melvyn Sim
  • Rick So
    • Categories Robust Optimization, Stochastic Programming, Supply Chain Management Tags , , ,

    This paper studies a distribution system consisting of multiple retail locations with transshipment operations among the retailers. Due to the difficulty in computing the optimal solution imposed by the transshipment operations and in estimating shortage cost from a practical perspective, we propose a robust optimization framework for analyzing the impact of transshipment operations on such … Read more