Efficient Production-Distribution System Design

The production-distribution system design is an integral part of the general supply chain design. This paper proposes a novel solution methodology for this problem that is based on Lagrangean relaxation, interior-point methods, and branch and bound. Unlike classical approaches, Lagrangean relaxation is applied in a two-level hierarchy, branch and bound is based on a Lagrangean lower bound and column generation (branch and price), while interior-point methods are used within a cutting-plane context (analytic centre cutting-plane method—ACCPM). Numerical results demonstrate that the two-level approach outperforms the classical approach and provides a very sharp lower bound that is the (proven) optimal in most cases.

• 저널Management Science · 51(7) · 1151–1164
• 토픽Vehicle Routing Optimization Methods · Industrial and Manufacturing Engineering
• DOI10.1287/mnsc.1050.0392
• 저자Samir Elhedhli, Jean‐Louis Goffin