A Bi-level programming approach to optimizing a logistic distribution network with balanced workload

Abstract

A distribution strategy with balanced workload allocation aims to be "cost-efficient", and helps in promoting customer service levels. However, little attention has been paid to the balanced workload allocation in logistics system design problems. In this paper, a bi-level programming model has been proposed, which optimizes the distribution network in logistic systems and at the same time, balances the workload of each distribution center (DC) on delivering products to its customers. A genetic algorithm (GA) based approach has been developed to cope with the bi-level model, and it has been tested on a best "real" dataset.