Location and Design Decisions of Facilities in a Distribution System with Elastic Customer Demand
This paper describes a bi-level programming model that seeks to simultaneously optimize location and design decisions of facilities in a distribution system in order to realize company＇s maximal total profit subject to the constraints on the facility capacity and the investment budget. In the upper-...
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| Published in | Shanghai jiao tong da xue xue bao Vol. 14; no. 5; pp. 606 - 612 |
|---|---|
| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Heidelberg
Shanghai Jiaotong University Press
01.10.2009
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| Subjects | |
| Online Access | Get full text |
| ISSN | 1007-1172 1995-8188 |
| DOI | 10.1007/s12204-009-0606-1 |
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| Abstract | This paper describes a bi-level programming model that seeks to simultaneously optimize location and design decisions of facilities in a distribution system in order to realize company＇s maximal total profit subject to the constraints on the facility capacity and the investment budget. In the upper-level problem, twoechelon integrated competitive/uncompetitive capacitated facility location model, which involves facility location and design, is presented. In the lower-level problem, customer is assumed to patronize store based on facility utility which is expressed by service time cost in the store and its travel cost to customer. Customer＇s facility choice behavior is presented by a stochastic user equilibrium assignment model with elastic demand. Since such a distribution system design problem belongs to a class of NP-hard problem, a genetic algorithm （GA）-based heuristic procedure is presented. Finally, a numerical example is used to illustrate the application of the proposed model and some parameter sensitivity analyses are presented. |
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| AbstractList | This paper describes a bi-level programming model that seeks to simultaneously optimize location and design decisions of facilities in a distribution system in order to realize company’s maximal total profit subject to the constraints on the facility capacity and the investment budget. In the upper-level problem, two-echelon integrated competitive/uncompetitive capacitated facility location model, which involves facility location and design, is presented. In the lower-level problem, customer is assumed to patronize store based on facility utility which is expressed by service time cost in the store and its travel cost to customer. Customer’s facility choice behavior is presented by a stochastic user equilibrium assignment model with elastic demand. Since such a distribution system design problem belongs to a class of NP-hard problem, a genetic algorithm (GA)-based heuristic procedure is presented. Finally, a numerical example is used to illustrate the application of the proposed model and some parameter sensitivity analyses are presented. This paper describes a bi-level programming model that seeks to simultaneously optimize location and design decisions of facilities in a distribution system in order to realize company＇s maximal total profit subject to the constraints on the facility capacity and the investment budget. In the upper-level problem, twoechelon integrated competitive/uncompetitive capacitated facility location model, which involves facility location and design, is presented. In the lower-level problem, customer is assumed to patronize store based on facility utility which is expressed by service time cost in the store and its travel cost to customer. Customer＇s facility choice behavior is presented by a stochastic user equilibrium assignment model with elastic demand. Since such a distribution system design problem belongs to a class of NP-hard problem, a genetic algorithm （GA）-based heuristic procedure is presented. Finally, a numerical example is used to illustrate the application of the proposed model and some parameter sensitivity analyses are presented. |
| Author | 王雪峰 |
| AuthorAffiliation | Research Center of Cluster and Enterprise Development, School of Business and Management, Jiangxi University of Finance and Economics, Nanchang 330013, China Department of Industrial Engineering and Logistics Engineering, Shanghai Jiaotong University, Shanghai 200240, China |
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| Cites_doi | 10.1002/nav.20169 10.1023/A:1020957904442 10.1016/j.ejor.2003.10.031 10.1016/S0305-0548(99)00126-4 10.1111/j.1467-8667.2006.00439.x 10.1016/S0377-2217(00)00051-5 10.1016/j.trb.2004.07.003 10.1287/trsc.34.2.216.12307 10.1016/S0377-2217(99)00256-8 10.1016/S0377-2217(01)00340-X 10.1016/j.ejor.2006.02.005 10.1016/0377-2217(95)00159-X 10.1016/S0377-2217(00)00169-7 10.1016/j.cor.2006.03.002 10.1016/j.ejor.2006.07.021 10.1016/S0305-0548(03)00241-7 |
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| Keywords | bi-level programming facility design distribution system TP 301 facility location |
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| References | Antunes, Peeters (CR2) 2001; 130 Dobson, Stavrulaki (CR14) 2006; 54 Klose, Drexl (CR1) 2005; 162 Berman, Krass (CR8) 2002; 111 Beasley, Chu (CR15) 1996; 94 Benati, Hansen (CR6) 2002; 143 Sheffi (CR13) 1985 Fernandez, Pelegrin, Plastria (CR10) 2007; 179 Hinojosa, Puerto, Fernandez (CR4) 2000; 123 Aboolian, Berman, Krass (CR12) 2007; 182 Yang, Wong (CR7) 2000; 34 Canel, Khumawala, Law (CR3) 2001; 28 McGarvey, Cavalier (CR9) 2005; 32 Zhang, Rushton (CR11) 2008; 35 Plastria (CR5) 2001; 129 Zhou, Lam, Heydecker (CR16) 2005; 39 Sun, Benekohal (CR17) 2006; 21 J. Fernandez (606_CR10) 2007; 179 G. Dobson (606_CR14) 2006; 54 A. Klose (606_CR1) 2005; 162 H. Yang (606_CR7) 2000; 34 R. Aboolian (606_CR12) 2007; 182 Y. Sheffi (606_CR13) 1985 F. Plastria (606_CR5) 2001; 129 R. G. McGarvey (606_CR9) 2005; 32 C. Canel (606_CR3) 2001; 28 Y. Hinojosa (606_CR4) 2000; 123 S. Benati (606_CR6) 2002; 143 J. Zhou (606_CR16) 2005; 39 O. Berman (606_CR8) 2002; 111 L. X. Zhang (606_CR11) 2008; 35 D. Sun (606_CR17) 2006; 21 A. Antunes (606_CR2) 2001; 130 J. E. Beasley (606_CR15) 1996; 94 |
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| Title | Location and Design Decisions of Facilities in a Distribution System with Elastic Customer Demand |
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