Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Distance-Based Simulated Annealing Algorithm for the determination of the Number and the Location of Centralized Warehouses

중앙창고의 수와 위치 결정을 위한 거리 기반 Simulated Annealing 앨고리듬

  • Lee, Dong-Ju (Department of Industrial & Systems Engineering) ;
  • Kim, Jin-Ho (Department of Industrial & Systems Engineering)
  • 이동주 (공주대학교 산업시스템공학과) ;
  • 김진호 (공주대학교 산업시스템공학과)
  • Published : 2007.09.30
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Abstract

Forming central warehouses for a number of stores can save costs in the continuous review inventory model due to economy of scale and information sharing. In this paper, transportation costs are included in this inventory model. Hence, the tradeoff between inventory-related costs and transportation costs is required. The main concern of this paper is to determine the number and location of central warehouses. Transportation costs are dependent on the distance from several central warehouses to each store. Hence, we develop an efficient simulated annealing algorithm using distance-based local search heuristic and merging heuristic to determine the location and the number of central warehouses. The objective of this paper is to minimize total costs such as holding, setup, penalty, and transportation costs. The performance of the proposed approach is tested by using some computational experiments.

Keywords

References

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