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2013 | OriginalPaper | Chapter

A Multi-Level Programming Model and Solution Algorithm for the Location of Distribution Centers with Uncertainty Demand

Authors : Patareeya Lasunon, Raknoi Akararungruangkul

Published in: Dynamics in Logistics

Publisher: Springer Berlin Heidelberg

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Abstract

The tri-level programming model is presented to seek the optimal location for distribution centers. The objective of top level model is to determine the optimal location by minimizing the total logistic cost which consists of the fixed operating cost to open distribution centers, the penalty cost and the transportation cost. The middle level model gives an equilibrium demand distribution center by maximizing the total customer demand (in %) that can be delivered on time and to maximize customer satisfaction in the bottom level model. The proposed algorithm is applied to solve this model to obtain the optimal solution. Finally, the tri-level programming model and its algorithm are demonstrated by a numerical example.

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Metadata
Title
A Multi-Level Programming Model and Solution Algorithm for the Location of Distribution Centers with Uncertainty Demand
Authors
Patareeya Lasunon
Raknoi Akararungruangkul
Copyright Year
2013
Publisher
Springer Berlin Heidelberg
DOI
https://doi.org/10.1007/978-3-642-35966-8_27