Industrial Engineering Journal ›› 2017, Vol. 20 ›› Issue (6): 22-30.doi: 10.3969/j.issn.1007-7375.e17-2225

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An Optimization Model of Distribution Network Considering Transshipment and Risk of Disruptions

YUAN Piye, SONG Naixu, WAN Peng, XIE Yawen   

  1. School of Management, Qingdao University of Technology, Qingdao 266520, China
  • Received:2017-09-02 Online:2017-12-30 Published:2018-01-09

Abstract: Considering distribution risks and transshipment in the process of Distribution Network Design, a nonlinear 0-1 integer programming location-inventory model is established, and a genetic algorithm is designed to solve it. Four solutions (without disruption risk and transshipment, considering only the transshipment, the disruption risk, and both transshipment and disruption risk) of distribution network design are studied and it is shown that at the stage of distribution network design, considering transshipment can significantly reduce the system operation cost, and increase income; considering disruption risks can significantly reduce the cost of emergency; and transshipment will be also contributing under disruption risks and the result will be the best.

Key words: transshipment, distribution network design, genetic algorithm, integer programming, location-inventory model

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