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Showing 2 results for Demand Uncertainty
Mr Yaser Khosravian, Prof Ali Shahandeh Nookabadi, Prof Ghasem Moslehi,
Volume 15, Issue 1 (7-2024)
Abstract
Traditional maximal p-hub covering problems focus on scenarios where network flow is constrained by resource limitations. However, many existing models rely on static parameters, overlooking the inherent randomness present in real-world logistics. This oversight can result in suboptimal network designs that are vulnerable to congestion and rising costs as demand varies. To address this issue, we propose a novel mathematical model for the capacitated single allocation maximal p-hub covering problem that takes into account stochastic variations in origin-destination flows. Although solving this model poses computational challenges, we utilize a Lagrangian relaxation algorithm to enhance efficiency. Computational experiments using the CAB dataset highlight the effectiveness of our approach in achieving optimal solutions while reducing computation time. This framework offers valuable insights for designing robust hub-and-spoke networks in the face of demand uncertainty.
Dr Amir-Mohammad Golmohammadi,
Volume 16, Issue 1 (3-2025)
Abstract
Facility location and routing problems have attracted significant research attention since the 1960s due to their practical relevance and complexity. Efficiently establishing production facilities, optimizing vehicle routes, and implementing effective inventory systems are essential for improving organizational performance. In this study, we propose an integrated location-routing model for the pharmaceutical supply chain, designed to satisfy all retailer demands through an appropriate inventory policy, ensuring no demand is unmet. The proposed mixed-integer mathematical model considers a four-tier supply chain, including manufacturers, distributors, wholesalers, and retailers, with the objective of establishing cost-effective warehouses while fulfilling all demand requirements. Demand uncertainty is addressed using a scenario-based probabilistic approach. The model is solved using GAMS for a small-scale case study. For larger-scale instances, where exact solutions are computationally challenging, a meta-heuristic approach—specifically, a genetic algorithm—is employed to efficiently obtain near-optimal solutions.
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