EURO 2025 Leeds
Abstract Submission

3094. Integrating Warehouse Design Issues into an Inventory-Location Problem for Designing a Supply Chain Network

Invited abstract in session MC-55: Network Optimization 3, stream Network Optimization.

Monday, 12:30-14:00
Room: Liberty 1.09

Authors (first author is the speaker)

1. Pablo A. Miranda
Department of Industrial Engineering, Universidad Catolica del Norte
2. Patricio Hidalgo
Departamento de Ingeneria Industrial, Universidad Catolica del Norte
3. Francisco J. Tapia-Ubeda
Department of Industrial Engineering, Universidad Católica del Norte
4. Carlos Monardes
School of Engineering, Universidad Católica del Norte

Abstract

Designing and operating warehouses or distribution centers significatively affect the actual performance and capacities of supply chains. On the other hand, capacities and costs are major drivers when Supply Chain Networks are designed, denoting the significant connection between designing warehouses and configurating the related Supply Chain Networks. Thus, this research proposes a novel Mixed Integer Nonlinear Programming formulation to simultaneously optimize the Supply Chain Network Design (i.e., warehouse location and customer assignments) and warehouses design, considering a multi period scenario with multiple products. The proposed formulation is based on a widely studied Inventory-Location modelling structure, in which inventory related decision and costs are integrated into a Facility Location formulation. An application of the proposed model denoted significant benefits when both issues are optimized simultaneously, instead of addressing them based on a traditional hierarchical solution strategy.

Keywords

Status: accepted


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