Pontificia Universidad Católica de Chile Pontificia Universidad Católica de Chile
Escalona P., Ordóñez F. and Marianov V. (2015)

Joint location-inventory problem with differentiated service levels using critical level policy

Revista : Transportation Research Part E-Logistics and Transportation Review
Volumen : 83
Páginas : 141-157
Tipo de publicación : ISI Ir a publicación


This paper analyzes the design of a distribution network for fast-moving items able to provide differentiated service levels in terms of product availability for two demand classes (high and low priority) using a critical level policy. The model is formulated as a MINLP with chance constraints for which we propose a heuristic to solve it. Although the heuristic does not guarantee an optimal solution, our computational experiments have shown that it provides good-quality solutions that are on average 0.8% and at worst 2.7% from the optimal solution.