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Multi-period optimal inventory-routing planning in multi-stage distribution networks

Pavlov A.N., Ivanov D.A., Sokolov B.V. Multi-period optimal inventory-routing planning in multi-stage distribution networks // VII Deutsch-Russischer Logistik- und SCM Workshop DR-LOG’12 St. Petersburg, 16.-19. Mai 2012: Proccedings. С. 171-178.


Pavlov A.N., Ivanov D.A., Sokolov B.V. Multi-period optimal inventory-routing planning in multi-stage distribution networks // VII Deutsch-Russischer Logistik- und SCM Workshop DR-LOG’12 St. Petersburg, 16.-19. Mai 2012: Proccedings. С. 171-178.


Abstract

A real case-study of distribution planning is considered. Based on a combination of fundamental results of modern optimal program control theory and operations research, an original approach to distribution network planning is developed in order to answer the challenges of dynamics, uncertainty, and adaptivity in SCs. First, uncertainty of execution is modelled integrated with the recommendations of how to proceed with the execution after the disturbance. Second, the execution scenarios are modelled taking into account instability of the SC structure. The results provide decision-makers with possibility to (1) plan optimal distribution in existing SC networks subject to cost and service level optimization and (2) analyse plans and networks structures subject to disturbances and decision in sourcing planning and SC design.