Stefan Nickel

Facility location and supply chain management - A review

Facility location decisions play a critical role in the strategic design of supply chain networks. In this paper, a literature review of facility location models in the context of supply chain management is given. We identify basic features that such models must capture to support decision-making involved in strategic supply chain planning. In particular, the integration of location decisions with other decisions relevant to the design of a supply chain network is discussed. Furthermore, aspects related to the structure of the supply chain network, including those specific to reverse logistics, are also addressed. Significant contributions to the current state-of-the-art are surveyed taking into account numerous factors. Supply chain performance measures and optimization techniques are also reviewed. Applications of facility location models to supply chain network design ranging across various industries are presented. Finally, a list of issues requiring further research are highlighted.

Dynamic multi-commodity capacitated facility location: a mathematical modeling framework for strategic supply chain planning

In this paper, we focus on the strategic design of supply chain networks. We propose a mathematical modeling framework that captures many practical aspects of network design problems simultaneously but which have not received adequate attention in the literature. The aspects considered include: dynamic planning horizon, generic supply chain network structure, external supply of materials, inventory opportunities for goods, distribution of commodities, facility configuration, availability of capital for investments, and storage limitations. Moreover, network configuration decisions concerning the gradual relocation of facilities over the planning horizon are considered. To cope with fluctuating demands, capacity expansion and reduction scenarios are also analyzed as well as modular capacity shifts. The relation of the proposed modeling framework with existing models is discussed. For problems of reasonable size, we report on our computational experience with standard mathematical programming software. In particular, useful insights on the impact of various factors on network design decisions are provided.

Multi-period reverse logistics network design

The configuration of the reverse logistics network is a complex problem comprising the determination of the optimal sites and capacities of collection centers, inspection centers, remanufacturing facilities, and/or recycling plants. In this paper, we propose a profit maximization modeling framework for reverse logistics network design problems. We present a mixed-integer linear programming formulation that is flexible to incorporate most of the reverse network structures plausible in practice. In order to consider the possibility of making future adjustments in the network configuration to allow gradual changes in the network structure and in the capacities of the facilities, we consider a multi-period setting. We propose a multi-commodity formulation and use a reverse bill of materials in order to capture component commonality among different products and to have the flexibility to incorporate all plausible means in tackling product returns. The proposed general framework is justified by a case study in the context of reverse logistics network design for washing machines and tumble dryers in Germany. We conduct extensive parametric and scenario analysis to illustrate the potential benefits of using a dynamic model as opposed to its static counterpart, and also to derive a number of managerial insights.

Dynamic supply chain design with inventory

In this paper, we deal with a facility location problem where we build new facilities or close down already existing facilities at two different distribution levels over a given time horizon. In addition, we allow to carry over stock in warehouses between consecutive periods. Our model intends to minimize the total costs, including transportation and inventory holding costs for products as well as fixed and operating costs for facilities. After formulating the problem, we propose a Lagrangian approach which relaxes the constraints connecting the distribution levels. A procedure is developed to solve the resulting, independent subproblems and, based on this solution, to construct a feasible solution for the original problem.

Dynamic transportation of patients in hospitals

This study analyzes and solves a patient transportation problem arising in large hospitals. The aim is to provide an efficient and timely transport service to patients between several locations in a hospital campus. Transportation requests arrive in a dynamic fashion and the solution methodology must therefore be capable of quickly inserting new requests in the current vehicle routes. Contrary to standard dial-a-ride problems, the problem under study includes several complicating constraints which are specific to a hospital context. The study provides a detailed description of the problem and proposes a two-phase heuristic procedure capable of handling its many features. In the first phase a simple insertion scheme is used to generate a feasible solution, which is improved in the second phase with a tabu search algorithm. The heuristic procedure was extensively tested on real data provided by a German hospital. Results show that the algorithm is capable of handling the dynamic aspect of the problem and of providing high-quality solutions. In particular, it succeeded in reducing waiting times for patients while using fewer vehicles.

CLASSIFICATION OF LOCATION MODELS.

Abstract There are several good reasons to introduce classification schemes for optimization models. For instance, the ability to make concise problem statements, as opposed to verbal, often ambiguous, descriptions. Or the possibility of simple data encoding and information retrieval in bibliographical information systems and software libraries. Therefore, in some branches of optimization, such as scheduling and queuing theory, classification is a widely used tool. The aim of this paper is to propose a 5-position classification that can be used to describe all location models. We provide a list of currently available symbols and indicate their usefulness in a (necessarily non-comprehensive) list of “classical” location models. The classification scheme has been in use since 1992 and has proven to be helpful in research, software development, classroom teaching, and for overview articles.

Adapting polyhedral properties from facility to hub location problems

We examine the feasibility polyhedron of the uncapacitated hub location problem (UHL) with multiple allocation, which has applications in the fields of air passenger and cargo transportation, telecommunication and postal delivery services. In particular we determine the dimension and derive some classes of facets for this polyhedron. We develop a general rule about lifting facets from the uncapacitated facility location problem to UHL. Using this lifting procedure we derive a new class of facets for UHL which dominates the inequalities in the original formulation. Thus we obtain a new formulation of the UHL whose constraints are all facet-defining.

Towards a unified territorial design approach — Applications, algorithms and GIS integration

Territory design may be viewed as the problem of grouping small geographic areas into larger geographic clusters called territories in such a way that the latter are acceptable according to relevant planning criteria. In this paper we review the existing literature for applications of territory design problems and solution approaches for solving these types of problems. After identifying features common to all applications we introduce a basic territory design model and present in detail two approaches for solving this model: a classical location-allocation approach combined with optimal split resolution techniques and a newly developed computational geometry based method. We present computational results indicating the efficiency and suitability of the latter method for solving large-scale practical problems in an interactive environment. Furthermore, we discuss extensions to the basic model and its integration into Geographic Information Systems.

Multicriteria planar location problems

Abstract Given Q different objective functions, three types of single-facility problems are considered: lexicographic, Pareto and max ordering problems. After discussing the interrelation between the problem types, a complete characterization of lexicographic locations and some instances of Pareto and max ordering locations is given. The characterizations result in efficient solution algorithms for finding these locations. The paper relies heavily on the theory of restricted locations developed by the same authors, and can be further extended, for instance, to multi-facility problems with several objectives. The proposed approach is more general than previously published results on multicriteria planar location problems and is particularly suited for modelling real-world problems.

Mid-term and short-term planning support for home health care services

In this paper we are looking at routing and scheduling problems arising in the context of home health care services. Many small companies are working in this sector in Germany and planning is still done manually, resulting in long planning times and relatively inflexible solutions.