Logistics Network Design with Differentiated Delivery Lead-Time: Benefits and Insights
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IMST012.pdf
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Author(s) • •
Cheong, Michelle L.F.
Bhatnagar, Rohit
Graves, Stephen C.
Date Issued
January 2005
Series/Report no.
Innovation in Manufacturing Systems and Technology (IMST);
Abstract
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.
Subjects
Logistics Network Design
Demand Classes
Benefits
Insights
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