A simulation-optimization approach for a service-constrained multi-echelon distribution network

Noordhoek, M.R., Dullaert, W., Lai, D.S.W. and De Leeuw, S. ORCID: 0000-0003-3056-8775, 2018. A simulation-optimization approach for a service-constrained multi-echelon distribution network. Transportation Research Part E: Logistics and Transportation Review. ISSN 1366-5545 (Forthcoming)

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Abstract

Academic research on (s,S) inventory policies for multi-echelon distribution networks with deterministic lead times, backordering, and fill rate constraints is limited. Inspired by a real-life Dutch food retail case we develop a simulation-optimization approach to optimize (s,S) inventory policies in such a setting. We compare the performance of a Nested Bisection Search (NBS) and a novel Scatter Search (SS) metaheuristic using 1280 instances from literature and we derive managerial implications from a real-life case. Results show that the SS outperforms the NBS on solution quality. Additionally, supply chain costs can be saved by allowing lower fill rates at upstream echelons.

Item Type: Journal article
Publication Title: Transportation Research Part E: Logistics and Transportation Review
Creators: Noordhoek, M.R., Dullaert, W., Lai, D.S.W. and De Leeuw, S.
Publisher: Pergamon Press
Date: 10 February 2018
ISSN: 1366-5545
Divisions: Schools > Nottingham Business School
Depositing User: Linda Sullivan
Date Added: 26 Feb 2018 09:44
Last Modified: 26 Feb 2018 09:44
URI: http://irep.ntu.ac.uk/id/eprint/32797

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