Logistics Network Design with Differentiated Delivery Lead-Time: Benefits and Insights
Author(s)
Cheong, Michelle L.F.; Bhatnagar, Rohit; Graves, Stephen C.
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Show full item recordAbstract
Most logistics network design models assume exogenous customer demand that is independent of the service time or level. This paper examines the benefits of segmenting demand according to lead-time sensitivity of customers. To capture lead-time sensitivity in the network design model, we use a facility grouping method to ensure that the different demand classes are satisfied on time. In addition, we perform a series of computational experiments to develop a set of managerial insights for the network design decision making process.
Date issued
2005-01Series/Report no.
Innovation in Manufacturing Systems and Technology (IMST);
Keywords
Logistics Network Design, Demand Classes, Benefits, Insights