Facility location in a three-echelon supply chain with stochastic demand: a discrete-event simulation approach

The facility location problem under numerous conditions and restrictions has been discussed extensively in past studies. The location problem of supply chain facilities and centers may be considered as an example. According to numerous studies conducted in the area of centers’ location in the supply chain, the examination process has moved closer to more realistic assumptions. This paper discusses the problem of locating facilities in a three echelon Supply chain with the consideration of responding to multi products in a stochastic demand environment. As the proposed model requires a long computational time, an innovative problem-solving method based on discrete-event simulation is utilized and presented with a numerical example.

Keywords:

component , Facility location problem , Facility location in supply chain , Discrete-event simulation