A Greedy Heuristic for a Three-Level Multi-Period Single-Sourcing Problem

19 Pages Posted: 20 Jan 2003

See all articles by H. Edwin Romeijn

H. Edwin Romeijn

University of Florida - Department of Industrial and Systems Engineering

Dolores Romero Morales

Maastricht University - Department of Quantitative Economics

Date Written: 31 2000 3,

Abstract

In this paper we consider a model for integrating transportation and inventory decisions in a three-level logistics network consisting of plants, warehouses, and retailers (or customers). Our model includes production and throughout capacity constraints, and minimizes production, holding, and tansportation costs in a dynamic environment. We show that the problem can be reformulated as a certain type of assignment problem with convex objective function. Based on this observation, we propose a greedy heuristic for the problem, and illustrate its behaviour on a class of randomly generated problem instances. These experiments suggest that the heuristic may be asymptotically feasible and optimal with probability one in the number of customers.

Keywords: dynamic models, dynamic demand pattern, transportation costs, inventory costs, heuristic solution approaches

JEL Classification: M, M11, R4, R49

Suggested Citation

Romeijn, H. Edwin and Romero Morales, Dolores, A Greedy Heuristic for a Three-Level Multi-Period Single-Sourcing Problem (31 2000 3,). ERIM Report Series Reference No. ERS-2000-04-LIS. Available at SSRN: https://ssrn.com/abstract=370806

H. Edwin Romeijn (Contact Author)

University of Florida - Department of Industrial and Systems Engineering ( email )

303 Weil Hall
Gainesville, FL 32611-6595
United States

Dolores Romero Morales

Maastricht University - Department of Quantitative Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
++ 31 43 388 38 15 (Phone)
++ 31 43 388 48 74 (Fax)

HOME PAGE: http://www.personeel.unimaas.nl/D.Romero

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