Dynamic planning design of three level distribution network with horizontal and vertical exchange
by Abdennour Ilyas Benfriha; Lamia Triqui-Sari; Aimade Eddine Bougloula; Mohammed Bennekrouf
International Journal of Logistics Systems and Management (IJLSM), Vol. 47, No. 3, 2024

Abstract: Inventory management in distribution networks remains a challenging task due to the demand nature and the limited storage capacity. In this work, we study a three-level, a multi-product and a multi-period distribution network consisting of a central warehouse, three distribution centres and six wholesalers. Each of them faces a random demand. In order to optimise the inventory management in the distribution network, we first propose to make a horizontal cooperation between actors of the same level in the form of product exchange; then we propose a second approach based on vertical-horizontal cooperation. Both approaches are modelled as a MIP model and solved using the CPLEX solver. The objective of this study is to analyse the performance in terms of costs, quantities in stock and customer satisfaction.

Online publication date: Fri, 23-Feb-2024

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