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In this paper, wepresent a model of integrated Location Routing and Inventory problem ILRIPwith considering random disruption at distribution centers DCs. The proposedmodel simultaneously determines the number and the location of DCs thatshould be opened, the assignment of customers to DCs, the allocation ofcustomers to active routes and the arrangement of customer sineach route,reorder point and economic order quantity for each distribution center, andfinally, safety stock level should be kept per distribution center. In thisstudy, we consider a stochastic-demand inventory system where the product’ssupply is randomly disrupted in DCs. Distribution centers adopt a r, Q inventorycontrol policy. We assume that the distribution centers can be faced with ashortage, in terms of disruption. Partial backordering is applied when a stockout occurs. The model is formulated as a mixed-integer nonlinear programming,which minimizes the expected total cost of the network. We solve the developedmathematical model by meta-heuristic algorithm. Present computational resultsfor several randomly generated instances also for a case study according toliterature to show validation of the proposed model.


Facility Location, Location-Inventory, Routing, Transportation, SCM

Cite this paper

Seyedhosseini, S. , Bozorgi-Amiri, A. and Daraei, S. 2014 An Integrated Location-Routing-Inventory Problem by Considering Supply Disruption. iBusiness, 6, 29-37. doi: 10.4236-ib.2014.62004.

Author: Seyed Mohammad Seyedhosseini, Ali Bozorgi-Amiri, Sahar Daraei



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