On solving the multi-period single-sourcing problem under uncertainty

A. Alonso-Ayuso, L.F. Escudero, C. Pizarro, H.E. Romeijn, D. Romero Morales

We present a framework for solving the strategic problem of assigning retailers to facilities in a multi-period single-sourcing product environment under uncertainty in the demand from the retailers and the cost of production, inventory holding, backlogging and distribution of the product. By considering a splitting variable mathematical representation of the Deterministic Equivalent Model, we specialize the so-called Branch-and-Fix Coordination algorithmic framework. It exploits the structure of the model and, specifically, the non-anticipativity constraints for the assignment variables. The algorithm uses the Twin Node Family ( TNF) concept. Our procedure is specifically designed for coordinating the selection of the branching  TNF and the branching S3 set, such that the non-anticipativity constraints are satisfied. Some computational experience is reported.

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