Logistics Network Design Evaluation in a Dynamic Environment

D. Romero Morales, J.A.E.E. van Nunen, H.E. Romeijn

Most of the optimization models proposed in the literature for evaluating the layout of a logistics distribution network consider a static demand pattern, which then leads to a single-period problem. Hence, the adequacy of those models is limited to situations where the demand pattern exhibits no remarkable variations throughout the planning horizon. We propose a dynamic model including many relevant issues which play a role when evaluating a logistics distribution network. In addition to dealing with dynamic demand patterns, our model includes aspects related to the inventory policy (in contrast with the static models). Heuristic solution approaches are presented for particular cases of this model and insight is given for the general model.

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