Distribution networks considering service level constraint and inter-depot transportation

In this paper, we design distribution networks in a supply chain system which optimizes the performance of distribution networks subject to required service level. This service level constraint is presented in order that an arbitrary request arriving at a distribution center (facility) should only have a (pre-specified) small probability of being lost. in our study customer’s demand is stochastic with poisson distribution function. in this model. we have inter-depot transportation (transportion between distribution centers (DCs)) and DCs have capacity and coverage radius restrictions. Thus any DC cannot service all customers. the aim of this model is to select and optimize location of plants and Dcs. Also the best flow of products between DCs and from plants to DCs and from DCs to customers will be determined. in this wey, the demand of customers must be satisfied at least service level.

Keywords:

facility Location , distribution network , inventory , coverage Radius , uncertainty modeling , inter-depot transportation