Integration of P-hub Location Problem and 3M Supply Chain

Abstract

The present study proposes an integrated model for hub location problem in a Multi-location, Multi-period, Multi-commodity (3M), three echelon supply chain. The problem is formulated as a mixed integer programming model and solved using GAMS software. As the developed model is a mixed integer non leaner programming and NP-hard, a new algorithm for re-formulation is proposed to change it to a mixed integer leaner programming and also a new heuristic algorithms is proposed to solve it in a reasonable time. To prove the applicability of the model, the well-known real CAB data set is used. Numerical examples show the benefit of the proposed model in both solution time and result quality.

Keywords

• multi-level
• multi-period
• supply chain performance elements
• p-hub median problem
• production planning