SUNConferences, Computers and Industrial Engineering 42

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A Particle Swarm Optimization Algorithm for Multi-depot Capacitated Location-routing Problem with Inventory Decisions in Supply Chain Network Design
Mahdi Bashiri, Ehsan Fallahzade

Last modified: 2012-06-21

Abstract


Location routing problem is one of main problems in location analysis which contains both strategic and tactical decisions. This problem can be more applicable when the inventory policies are investigated. In this paper we present a particle swarm optimization algorithm to solve a model which considers location, allocation, capacity, inventory and routing decisions in a stochastic supply chain network. Each depot keeps certain amount of safety stock to reduce the risk of uncertainty. This uncertainty comes from customer demands that follow a normal distribution. The proposed solution method optimizes the location, routing and inventory problems simultaneously. The specific feature of the proposed algorithm is considering the location and routing problems together in a single stage when searching in the feasible space to find the best solution. The proposed approach was analyzed by some simulated numerical examples and the results compared by an exact solution approach. The results show that the proposed solution approach performs more efficiently.


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