Please use this identifier to cite or link to this item: https://doi.org/10.1287/opre.1040.0140
Title: Stochastic transportation-inventory network design problem
Authors: Shu, J. 
Teo, C.-P. 
Shen, Z.-J.M.
Keywords: Facilities/equipment planning: stochastic
Inventory/production: uncertainty, stochastic
Programming: nonlinear
Issue Date: 2005
Source: Shu, J., Teo, C.-P., Shen, Z.-J.M. (2005). Stochastic transportation-inventory network design problem. Operations Research 53 (1) : 48-60. ScholarBank@NUS Repository. https://doi.org/10.1287/opre.1040.0140
Abstract: We study the stochastic transportation-inventory network design problem involving one supplier and multiple retailers. Each retailer faces some uncertain demand, and safety stock must be maintained to achieve suitable service levels. However, risk-pooling benefits may be achieved by allowing some retailers to serve as distribution centers for other retailers. The problem is to determine which retailers should serve as distribution centers and how to allocate the other retailers to the distribution centers. Shen et al. (2003) formulated this problem as a set-covering integer-programming model. The pricing problem that arises from the column generation algorithm gives rise to a new class of the submodular function minimization problem. In this paper, we show that by exploiting certain special structures, we can solve the general pricing problem in Shen et al. efficiently. Our approach utilizes the fact that the set of all lines in a two-dimension plane has low VC-dimension. We present computational results on several instances of sizes ranging from 40 to 500 retailers. Our solution technique can be applied to a wide range of other concave cost-minimization problems. © 2005 INFORMS.
Source Title: Operations Research
URI: http://scholarbank.nus.edu.sg/handle/10635/44089
ISSN: 0030364X
DOI: 10.1287/opre.1040.0140
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

175
checked on Dec 14, 2017

WEB OF SCIENCETM
Citations

154
checked on Nov 18, 2017

Page view(s)

48
checked on Dec 10, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.