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Author:Simchi-Levi, D.
Title:Hierarchical planning for probabilistic distribution systems in euclidean spaces.
Journal:Management Science
1992 : FEB, VOL. 38:2, p. 198-211
Index terms:PHYSICAL DISTRIBUTION MANAGEMENT
PROBABILITY
PLANNING MODELS
Language:eng
Abstract:An analytical model is developed to assist the design and control of probabilistic distribution systems. The probabilistic aspect considered is that only a subset of all potential customers needs service on any given working day, This subset and their demand are determined according to some probability distribution. The cost of operating such systems is affected by the number and locations of the distribution centers, the allocation of customers to each center, and the routing strategy. A three-stage hiearchical approach is proposed in which decisions about the number of centers and their locations (first stage), customers allocations (second stage) and routing strategies (third stage) are combined to reduce total system cost.
SCIMA record nr: 102440
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