A LOCATION-INVENTORY MODEL INCLUDING DELIVERY DELAY COST AND CAPACITY CONSTRAINTS IN A STOCHASTIC DISTRIBUTION NETWORK

ENGLISH ABSTRACT: In this paper, we present a distribution network design problem in a supply chain system that minimises the total cost of location, inventory, and delivery delay. Customers’ demands are random, and multiple capacity levels are available for the distribution centers. The problem is first formulated as a mixed integer convex programming model to optimally solve medium-sized instances, and then a heuristic is developed for solving large-sized instances. AFRIKAANSE OPSOMMING: In hierdie artikel word ‘n distribusienetwerkprobleem in ‘n voorsieningsketting voorgehou waar die totale koste van die ligging, voorraad en afleweringsvertragings geminimiseer word. Die vraag is lukraak en verskeie kapasiteitsvlakke is beskikbaar in die verspreidingsentra. Die problem word eers geformuleer as ‘n gemengde-heeltal-konvekse model sodat mediumgrootte gevalle geoptimiseer kan word, waarna ‘n heuristieke benadering ontwikkel word vir die oplos van grootskaalse aktiwiteite.