Location-Allocation Problems in The Perspective of Supply Chain: Approaches and Applications

Ilyas Masudin


Abstract


This article attempts to explore approaches and applications of the location-allocation problems in the supply chain perspective. A review has been done for articles which have relation with the approach of location-allocation problems that includes the drivers of the supply chain such as inventory, transportation, service level, and customer demand. Moreover, the application of location-allocation problems that consider supply chain drivers is also discussed. In this article, a discussion of location-allocation discussions previously investigated by researchers is done through a literature review published in several reputable journal databases. 57 journal articles successfully collected and reviewed related approaches and applications used by researchers in location-allocation problems in a supply chain perspective. Analysis of the findings of this article can be summarized that approaches of the location-allocation problem in supply chain perspective can be divided into 2 areas: the echelon of the supply chain and the drivers of the supply chain. 

Keywords


supply chain; location problem; allocation; approach

Full Text:

PDF

References


T. Santoso, S. Ahmed, M. Goetschalckx, and A. Shapiro, "A stochastic programming approach for supply chain network design under uncertainty," European Journal of Operational Research, vol. 167, pp. 96-115, 2005. https://doi.org/10.1016/j.ejor.2004.01.046

S. H. Owen and M. S. Daskin, "Strategic facility location: A review," European journal of operational research, vol. 111, pp. 423-447, 1998. https://doi.org/10.1016/S0377-2217(98)00186-6

R. Bhatnagar and A. S. Sohal, "Supply chain competitiveness: measuring the impact of location factors, uncertainty and manufacturing practices," Technovation, vol. 25, pp. 443-456, 2005. https://doi.org/10.1016/j.technovation.2003.09.012

J. Perl and S. Sirisoponsilp, "Distribution networks: facility location, transportation and inventory," International Journal of Physical Distribution & Materials Management, vol. 18, pp. 18-26, 1988. https://doi.org/10.1108/eb014705

M. T. Melo, S. Nickel, and F. Saldanha-Da-Gama, "Facility location and supply chain management–A review," European journal of operational research, vol. 196, pp. 401-412, 2009. https://doi.org/10.1016/j.ejor.2008.05.007

G. Şahin and H. Süral, "A review of hierarchical facility location models," Computers & Operations Research, vol. 34, pp. 2310-2331, 2007. https://doi.org/10.1016/j.cor.2005.09.005

Z.-J. M. Shen, C. Coullard, and M. S. Daskin, "A joint location-inventory model," Transportation science, vol. 37, pp. 40-55, 2003. https://pubsonline.informs.org/doi/abs/10.1287/trsc.37.1.40.12823#

H. E. Romeijn, J. Shu, and C.-P. Teo, "Designing two-echelon supply networks," European Journal of Operational Research, vol. 178, pp. 449-462, 2007. https://doi.org/10.1016/j.ejor.2006.02.016

A. Diabat, O. Battaïa, and D. Nazzal, "An improved Lagrangian relaxation-based heuristic for a joint location-inventory problem," Computers & Operations Research, vol. 61, pp. 170-178, 2015. https://doi.org/10.1016/j.cor.2014.03.006

M. Hosseini and M. Ameli, "A bi-objective model for emergency services location-allocation problem with maximum distance constraint," Management Science Letters, vol. 1, pp. 115-126, 2011. http://m.growingscience.com/msl/Vol1/msl_2010_20.pdf

A. Diabat, T. Abdallah, and A. Henschel, "A closed-loop location-inventory problem with spare parts consideration," Computers & Operations Research, vol. 54, pp. 245-256, 2015. https://doi.org/10.1016/j.cor.2013.08.023

B. Avittathur, J. Shah, and O. K. Gupta, "Distribution centre location modelling for differential sales tax structure," European Journal of Operational Research, vol. 162, pp. 191-205, 2005. https://doi.org/10.1016/j.ejor.2003.10.012

I. Masudin, "Facility location modeling in multi-echelon distribution system: A case study of Indonesian Liquefied petroleum gas supply chain," Aceh International Journal of Science and Technology, vol. 2, pp. 37-43, 2013. https://doi.org/10.13170/aijst.2.1.595

R. Church and C. ReVelle, "The maximal covering location problem," in Papers of the Regional Science Association, 1974, pp. 101-118. https://doi.org/10.1007/BF01942293

Y. Hinojosa, J. Kalcsics, S. Nickel, J. Puerto, and S. Velten, "Dynamic supply chain design with inventory," Computers & Operations Research, vol. 35, pp. 373-391, 2008. https://doi.org/10.1016/j.cor.2006.03.017

H. Ma and R. Davidrajuh, "An iterative approach for distribution chain design in agile virtual environment," Industrial Management & Data Systems, vol. 105, pp. 815-834, 2005. https://doi.org/10.1108/02635570510607012

Z.-J. M. Shen, "A profit-maximizing supply chain network design model with demand choice flexibility," Operations Research Letters, vol. 34, pp. 673-682, 2006. https://doi.org/10.1016/j.orl.2005.10.006

K. Sourirajan, L. Ozsen, and R. Uzsoy, "A single-product network design model with lead time and safety stock considerations," IIE Transactions, vol. 39, pp. 411-424, 2007. https://doi.org/10.1080/07408170600941631

A. Marin and B. Pelegrín, "The return plant location problem: Modelling and resolution," European journal of operational research, vol. 104, pp. 375-392, 1998. https://doi.org/10.1016/S0377-2217(97)00192-6

D. R. Sule, "Simple methods for uncapacitated facility location/allocation problems," Journal of Operations Management, vol. 1, pp. 215-223, 1981. https://doi.org/10.1016/0272-6963(81)90027-9

P. Hanjoul and D. Peeters, "A facility location problem with clients' preference orderings," Regional Science and Urban Economics, vol. 17, pp. 451-473, 1987. https://doi.org/10.1016/0166-0462(87)90011-1

L. K. Nozick and M. A. Turnquist, "Integrating inventory impacts into a fixed-charge model for locating distribution centers," Transportation Research Part E: Logistics and Transportation Review, vol. 34, pp. 173-186, 1998. https://doi.org/10.1016/S1366-5545(98)00010-6

A. Suzuki and Z. Drezner, "The p-center location problem in an area," Location science, vol. 4, pp. 69-82, 1996. https://doi.org/10.1016/S0966-8349(96)00012-5

L. K. Nozick and M. A. Turnquist, "Inventory, transportation, service quality and the location of distribution centers," European Journal of Operational Research, vol. 129, pp. 362-371, 2001. https://doi.org/10.1016/S0377-2217(00)00234-4

A. T. Murray and R. A. Gerrard, "Capacitated service and regional constraints in location-allocation modeling," Location science, vol. 5, pp. 103-118, 1997. https://doi.org/10.1016/S0966-8349(97)00016-8

M. S. Daskin, "What you should know about location modeling," Naval Research Logistics (NRL), vol. 55, pp. 283-294, 2008. https://doi.org/10.1002/nav.20284

J. Bautista and J. Pereira, "Modeling the problem of locating collection areas for urban waste management. An application to the metropolitan area of Barcelona," Omega, vol. 34, pp. 617-629, 2006. https://doi.org/10.1016/j.omega.2005.01.013

S.-u. Rahman and D. K. Smith, "Use of location-allocation models in health service development planning in developing nations," ed: Elsevier, 2000. https://doi.org/10.1016/S0377-2217(99)00289-1

H. Jia, F. Ordóñez, and M. M. Dessouky, "Solution approaches for facility location of medical supplies for large-scale emergencies," Computers & Industrial Engineering, vol. 52, pp. 257-276, 2007. https://doi.org/10.1016/j.cie.2006.12.007

A. R. Mahmud and V. Indriasari, "Facility location models development to maximize total service area," Theoretical and Empirical Researches in Urban Management, vol. 4, pp. 87-100, 2009. https://www.jstor.org/stable/24872411?seq=2#metadata_info_tab_contents

F. Barahona and D. Jensen, "Plant location with minimum inventory," Mathematical Programming, vol. 83, pp. 101-111, 1998. https://doi.org/10.1007/BF02680552

A. I. Barros, R. Dekker, and V. Scholten, "A two-level network for recycling sand: a case study," European journal of operational research, vol. 110, pp. 199-214, 1998. https://doi.org/10.1016/S0377-2217(98)00093-9

I. Masudin, "An Investigation of The Relationship Between Facility Location Decisions, Service Level and Distribution Costs: A Proposed Model Ffr Indonesian LPG Supply Chain," International Journal of Business & Society, vol. 16, 2015. http://www.ijbs.unimas.my/repository/pdf/Vol16-no1-paper8.pdf

S. U. Randhawa and T. M. West, "An integrated approach to facility location problems," Computers & Industrial Engineering, vol. 29, pp. 261-265, 1995.

Z.-J. M. Shen and L. Qi, "Incorporating inventory and routing costs in strategic location models," European journal of operational research, vol. 179, pp. 372-389, 2007. https://doi.org/10.1016/j.ejor.2006.03.032

A. A. Javid and N. Azad, "Incorporating location, routing and inventory decisions in supply chain network design," Transportation Research Part E: Logistics and Transportation Review, vol. 46, pp. 582-597, 2010. https://doi.org/10.1016/j.tre.2009.06.005

S. Sirisoponsilp, "Warehouse location under multiple transportation options," 1991.

S. Melkote and M. S. Daskin, "An integrated model of facility location and transportation network design," Transportation Research Part A: Policy and Practice, vol. 35, pp. 515-538, 2001. https://doi.org/10.1016/S0965-8564(00)00005-7

G. T. Temur, T. Kaya, and C. Kahraman, "Facility location selection in reverse logistics using a type-2 fuzzy decision aid method," in Supply chain management under fuzziness, ed: Springer, 2014, pp. 591-606. https://doi.org/10.1007/978-3-642-53939-8_25

R. Z. Farahani, M. Hekmatfar, B. Fahimnia, and N. Kazemzadeh, "Hierarchical facility location problem: Models, classifications, techniques, and applications," Computers & Industrial Engineering, vol. 68, pp. 104-117, 2014. https://doi.org/10.1016/j.cie.2013.12.005

P. Chaiwuttisak, H. Smith, Y. Wu, C. Potts, T. Sakuldamrongpanich, and S. Pathomsiri, "Location of low-cost blood collection and distribution centres in Thailand," Operations Research for Health Care, vol. 9, pp. 7-15, 2016. https://doi.org/10.1016/j.orhc.2016.02.001

M. Gebicki, E. Mooney, S.-J. G. Chen, and L. M. Mazur, "Evaluation of hospital medication inventory policies," Health care management science, vol. 17, pp. 215-229, 2014. https://doi.org/10.1007/s10729-013-9251-1

G. Şahin, H. Süral, and S. Meral, "Locational analysis for regionalization of Turkish Red Crescent blood services," Computers & Operations Research, vol. 34, pp. 692-704, 2007. https://doi.org/10.1016/j.cor.2005.03.020

J. Schuijbroek, R. C. Hampshire, and W.-J. Van Hoeve, "Inventory rebalancing and vehicle routing in bike sharing systems," European Journal of Operational Research, vol. 257, pp. 992-1004, 2017. https://doi.org/10.1016/j.ejor.2016.08.029

B. Boyacı, K. G. Zografos, and N. Geroliminis, "An optimization framework for the development of efficient one-way car-sharing systems," European Journal of Operational Research, vol. 240, pp. 718-733, 2015. https://doi.org/10.1016/j.ejor.2014.07.020

J.-R. Lin and T.-H. Yang, "Strategic design of public bicycle sharing systems with service level constraints," Transportation research part E: logistics and transportation review, vol. 47, pp. 284-294, 2011. https://doi.org/10.1016/j.tre.2010.09.004

Y. V. Usman, A. H. Ismail, N. Y. Hidayah, and L. Chairani, "Pengembangan model pemilihan lokasi pembuangan akhir sampah perkotaan (Studi kasus: Kota Jakarta Timur)," 2013. http://hdl.handle.net/11617/3300

N. Acharya, P. Mahat, and N. Mithulananthan, "An analytical approach for DG allocation in primary distribution network," International Journal of Electrical Power & Energy Systems, vol. 28, pp. 669-678, 2006. https://doi.org/10.1016/j.ijepes.2006.02.013

K. Govindan, A. Jafarian, R. Khodaverdi, and K. Devika, "Two-echelon multiple-vehicle location–routing problem with time windows for optimization of sustainable supply chain network of perishable food," International Journal of Production Economics, vol. 152, pp. 9-28, 2014. https://doi.org/10.1016/j.ijpe.2013.12.028

P. E. D. K. Wati and H. Nuha, "Pengembangan Model Capacitated Maximal Covering Location Problem (CMCLP) Dalam Penentuan Lokasi Pendirian Gudang," Jurnal Teknik Industri, vol. 19, pp. 21-27, 2018. https://doi.org/10.22219/JTIUMM.Vol19.No1.21-27

D. Kusmindarti, "Penentuan Lokasi Distributor dengan Menggunakan Analytical Hierarchy Process dan Skala Liberatore," Jurnal Teknik Industri, vol. 10, pp. 13-19, 2010. https://doi.org/10.22219/JTIUMM.Vol10.No1.13-19

Z. Lu and N. Bostel, "A facility location model for logistics systems including reverse flows: The case of remanufacturing activities," Computers & Operations Research, vol. 34, pp. 299-323, 2007. https://doi.org/10.1016/j.cor.2005.03.002

G. Cornuéjols, G. Nemhauser, and L. Wolsey, "The Uncapicitated Facility Location Problem," Cornell University Operations Research and Industrial Engineering1983.

S. M. Mousavi, N. Alikar, S. T. A. Niaki, and A. Bahreininejad, "Optimizing a location allocation-inventory problem in a two-echelon supply chain network: A modified fruit fly optimization algorithm," Computers & Industrial Engineering, vol. 87, pp. 543-560, 2015. https://doi.org/10.1016/j.cie.2015.05.022

B. L. Shankar, S. Basavarajappa, J. C. Chen, and R. S. Kadadevaramath, "Location and allocation decisions for multi-echelon supply chain network–A multi-objective evolutionary approach," Expert Systems with Applications, vol. 40, pp. 551-562, 2013. https://doi.org/10.1016/j.eswa.2012.07.065

S. M. Mousavi, A. Bahreininejad, S. N. Musa, and F. Yusof, "A modified particle swarm optimization for solving the integrated location and inventory control problems in a two-echelon supply chain network," Journal of intelligent manufacturing, vol. 28, pp. 191-206, 2017. https://doi.org/10.1007/s10845-014-0970-z

V. Hajipour, S. H. A. Rahmati, S. H. R. Pasandideh, and S. T. A. Niaki, "A multi-objective harmony search algorithm to optimize multi-server location–allocation problem in congested systems," Computers & Industrial Engineering, vol. 72, pp. 187-197, 2014. https://doi.org/10.1016/j.cie.2014.03.018




DOI: https://doi.org/10.22219/JTIUMM.Vol20.No1.1-11 | Abstract views : 318 | PDF views : 140

Copyright (c) 2019 Jurnal Teknik Industri

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.


 
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.