Considering Stochastic Inventory in Logistics Network DesignProblems with Response Time Constraints

摘要

Traditional logistics network design models, even the ones that consider service (coverage) constraints, assumernthat it is enough to locate a facility within a certain distance of its customers for it to satisfy its customerrnbase. When the facilities are stocking locations, another determinant of service is to have the right item atrnthe right place so the facility can actually deliver the items to its customers within a reasonable time window.rnWe integrate this part-availability based stochastic measure, which is a function of inventory policies usedrnat the facilities, to a network design model and illustrate when the benefit from integration is greatest.