A simulation-based optimization method for production-distribution network design

2005 ◽  
Author(s):  
Hongwei Ding ◽  
L. Benyoucef ◽  
Xiaolan Xie
Keyword(s):  
Network Design ◽  
Distribution Network ◽  
Optimization Method ◽  
Distribution Network Design ◽  
Simulation Based ◽  
Production Distribution ◽  
Simulation Based Optimization

scholarly journals A Discrete Simulation-Based Optimization Algorithm for the Design of Highly Responsive Last-Mile Distribution Networks

2021 ◽  
Author(s):  
André Snoeck ◽  
Matthias Winkenbach
Keyword(s):  
Network Design ◽  
Distribution Network ◽  
Distribution Networks ◽  
Optimization Techniques ◽  
On Demand ◽  
Distribution Network Design ◽  
Last Mile ◽  
Simulation Based ◽  
Simulation Based Optimization ◽  
Congestion Effects

Online and omnichannel retailers are proposing increasingly tight delivery deadlines, moving toward instant on-demand delivery. To operate last-mile distribution systems with such tight delivery deadlines efficiently, defining the right strategic distribution network design is of paramount importance. However, this problem exceeds the complexity of the strategic design of traditional last-mile distribution networks for two main reasons: (1) the reduced time available for order handling and delivery and (2) the absence of a delivery cut-off time that clearly separates order collection and delivery periods. This renders state-of-the-art last-mile distribution network design models inappropriate, as they assume periodic order fulfillment based on a delivery cutoff. In this study, we propose a metamodel simulation-based optimization (SO) approach to strategically design last-mile distribution networks with tight delivery deadlines. Our methodology integrates an in-depth simulator with traditional optimization techniques by extending a traditional black-box SO algorithm with an analytical model that captures the underlying structure of the decision problem. Based on a numerical study inspired by the efforts of a global fashion company to introduce on-demand distribution with tight delivery deadlines in Manhattan, we show that our approach outperforms contemporary SO approaches as well as deterministic and stochastic programming methods. In particular, our method systematically yields network designs with superior expected cost performance. Furthermore, it converges to good solutions with a lower computational budget and is more consistent in finding high-quality solutions. We show how congestion effects in the processing of orders at facilities negatively impact the network performance through late delivery of orders and reduced potential for consolidation. In addition, we show that the sensitivity of the optimal network design to congestion effects in order processing at the facilities increases as delivery deadlines become increasingly tight.

Evaluation of alternative distribution network design strategies

2009 ◽  
Author(s):  
Chin Kim Gan ◽  
N. Silva ◽  
D. Pudjianto ◽  
G. Strbac ◽  
R. Ferris ◽  
...  
Keyword(s):  
Network Design ◽  
Distribution Network ◽  
Design Strategies ◽  
Distribution Network Design ◽  
Alternative Distribution

Examination of the impact of possible distribution network design on network losses

2009 ◽  
Author(s):  
Ding-Mei Cao ◽  
D. Pudjianto ◽  
G. Strbac ◽  
R. Ferris ◽  
I. Foster ◽  
...  
Keyword(s):  
Network Design ◽  
Distribution Network ◽  
Distribution Network Design ◽  
Network Losses ◽  
The Impact
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