Abstract
Demand existing at client points in the plane for several products should be met. Products have to be assembled from different components obtainable at given prices at various sources with known production capacities. The optimal design of the resulting supply chain must be determined, including the location of a central assembly station in the plane, so as to minimize the total operational cost comprising buying and transport of components as well as transport of final products. This problem leads to a difficult nonlinear and non-convex optimization problem for which a locally convergent algorithm is proposed. Some computational results are presented.
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The research of the second author was partially supported by a grant of the Algerian Ministry of Higher Education for research at VUB-Belgium, and by the VUB project GOA62. A preliminary version of this paper was presented at the EWGLA 17 meeting in Elche, Nov 2008.
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Plastria, F., Elosmani, M. Continuous location of an assembly station. TOP 21, 323–340 (2013). https://doi.org/10.1007/s11750-011-0185-9
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DOI: https://doi.org/10.1007/s11750-011-0185-9