Linear location-inventory models for service parts logistics network design
Gzara, Fatma and Nematollahi, Eissa and Daşcı, Abdullah (2014) Linear location-inventory models for service parts logistics network design. Computers & Industrial Engineering, 69 . pp. 53-63. ISSN 0360-8352 (Print) 1879-0550 (Online)
Official URL: http://dx.doi.org/10.1016/j.cie.2013.12.014
We present two integrated network design and inventory control problems in service-parts logistics systems. Such models are complicated due to demand uncertainty and highly nonlinear time-based service level constraints. Exploiting unique properties of the nonlinear constraints, we provide an equivalent linear formulation under part-warehouse service requirements, and an approximate linear formulation under part service requirements. Computational results indicate the superiority of our approach over existing approaches in the literature.
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