In this paper, a two-stage stochastic facility location problem integrated with inven- tory and recourse decisions is studied and solved. This problem is inspired by an industrial supply chain design problem of a large retail chain with slow-moving prod- ucts. Uncertainty is expressed by a discrete and finite set of scenarios. Recourse actions can be taken after the realization of random demands. Location, inventory, transportation, and recourse decisions are integrated into a mixed-integer program with an objective minimizing the expected total cost. A dual heuristic procedure is studied and embedded into the sample average approximation (SAA) method. The computation experiments demonstrate that our combined SAA with dual heuristic algorithm has a similar performance on solution quality and a much shorter compu- tational time. / Thesis / Master of Applied Science (MASc)
| Identifer | oai:union.ndltd.org:mcmaster.ca/oai:macsphere.mcmaster.ca:11375/20483 |
| Date | January 2016 |
| Creators | E, Fan |
| Contributors | Huang, Kai, Computational Engineering and Science |
| Source Sets | McMaster University |
| Language | en_US |
| Detected Language | English |
| Type | Article |
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