A simulated annealing approach for redesigning a warehouse network problem

• Main Authors: Rozieana, Khairuddin, Zaitul Marlizawati, Zainuddin, Gan, Jia Jiun
• Format: Conference or Workshop Item
• Language: English
• Published: IOP Publishing 2017
• Subjects: QA Mathematics
• Online Access: http://umpir.ump.edu.my/id/eprint/20022/1/Khairuddin_2017_J._Phys.%253A_Conf._Ser._890_012109.pdf; http://umpir.ump.edu.my/id/eprint/20022/; https://doi.org/10.1088/1742-6596/890/1/012109
• Institution: Universiti Malaysia Pahang

Now a day, several companies consider downsizing their distribution networks in ways that involve consolidation or phase-out of some of their current warehousing facilities due to the increasing competition, mounting cost pressure and taking advantage on the economies of scale. Consequently, the changes on economic situation after a certain period of time require an adjustment on the network model in order to get the optimal cost under the current economic conditions. This paper aimed to develop a mixed-integer linear programming model for a two-echelon warehouse network redesign problem with capacitated plant and uncapacitated warehouses. The main contribution of this study is considering capacity constraint for existing warehouses. A Simulated Annealing algorithm is proposed to tackle with the proposed model. The numerical solution showed the model and method of solution proposed was practical.