Solving a mathematical model with multi warehouses and retailers in distribution network by a simulated annealing algorithm
Subject Areas : Mathematical OptimizationS Ebrahimnezhad 1 , H Javanshir 2 , A Najafi 3
1 - Assistant Professor, Dep. of Industrial Engineering, Islamic Azad University, Karaj Branch, Iran
2 - Assistant Professor, Dep. of Industrial Engineering, Islamic Azad University, Tehran South Branch, Tehran, Iran
3 - M.Sc., Dep. of Industrial Engineering, , Islamic Azad University, Najaf Abad Branch, Iran
Keywords: supply chain management, Production / distribution programming, Simulated anealing,
Abstract :
Determination of shipment quantity and distribution problem is an important subject in today’s business. This paper describes the inventory/distribution network design. The system addresses a class of distribution network design problem, which is characterized by multiple products family, multiple warehouses and retail-ers. The maximum capacity of vehicles and warehouses are also known. The resulting system focuses on two key goals: minimizing the lost sales cost as a costumer’s satisfaction factor and balancing sum of service dis-tances for different warehouses. In this paper we consider the distribution network problem formulated by 0-1 mixed integer linear programming model. Due to difficulty of obtaining the optimum solution in medium and large scale problems, a simulated annealing algorithm (SA) is also applied. The efficiency of this algorithm is demonstrated by comparing its numerical experiment results with those of SA algorithm and LINGO 6. package.