A network design model considering inventory cost from a third party logistics perspective

摘要

The importance of third party logistics (3PLs) service providers is increasing in supply chain management, particularly in warehousing and transportation services as clients expect 3PLs to improve lead times, fill rates, and inventory levels. Therefore, in a dynamic and uncertain business environment, 3PLs are under pressure to meet client service requirements. Few studies have addressed the problem of logistic network design from viewpoint of 3PLs. The main objective of this paper is to propose a new network design problem from 3PLs perspectives by considering inventory to determine economic order quantity. This paper proposes a new nonlinear mixed integer programming model for integrated logistics network design that in facility location-allocation and inventory location problems. To optimize the model, new auxiliary variables and constraints are added. The model was solved by using DICOPT solver.