TY - JOUR

T1 - Solution method for delivery center location problem considering inventory cost and profit ratio

AU - Tanikawa, Hiroto

AU - Fukuba, Tomoki

AU - Sato, Tetsuya

AU - Shiina, Takayuki

N1 - Publisher Copyright:
© 2020 ICIC International. All rights reserved.

PY - 2020

Y1 - 2020

N2 - Facility location and allocation decision problem LAPs (Location-Allocation Problems) aiming to minimize total expenses, such as transportation expenses, have been considered in conventional supply chain networks. Facility location and inventory decision problem PM-LIPs (Profit-Maximization Location-Inventory Problems), which aim to maximize profits, are also being studied. This study considers a case in which a customer's demand is sensitive to the price of the commodity, and presents the PM-LIPs of the distribution center, which considers inventory cost and profit ratio. It also verifies the efficiency of the solution through numerical experiments. In this paper the new efficient solution algorithm based on piecewise linear approximation is developed.

AB - Facility location and allocation decision problem LAPs (Location-Allocation Problems) aiming to minimize total expenses, such as transportation expenses, have been considered in conventional supply chain networks. Facility location and inventory decision problem PM-LIPs (Profit-Maximization Location-Inventory Problems), which aim to maximize profits, are also being studied. This study considers a case in which a customer's demand is sensitive to the price of the commodity, and presents the PM-LIPs of the distribution center, which considers inventory cost and profit ratio. It also verifies the efficiency of the solution through numerical experiments. In this paper the new efficient solution algorithm based on piecewise linear approximation is developed.

KW - Mixed integer program-ming

KW - Piecewise linear approximation

KW - Profit-maximization location-inventory problems

UR - http://www.scopus.com/inward/record.url?scp=85082497540&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85082497540&partnerID=8YFLogxK

U2 - 10.24507/icicel.14.05.457

DO - 10.24507/icicel.14.05.457

M3 - Article

AN - SCOPUS:85082497540

SN - 1881-803X

VL - 14

SP - 457

EP - 482

JO - ICIC Express Letters

JF - ICIC Express Letters

IS - 5

ER -