A Heuristic Method for the two-stage Supply Chain Distribution Problem with Fixed Charge
A two-stage supply chain distribution problem with a fixed charge is considered in this paper. There is a variable transportation cost that depends linearly on the quantity transported, and a fixed cost associated with a route between a source and a destination when a non-zero quantity is transported. A heuristic method that is influenced by Vogelís approximation method has been proposed with the objective of minimizing the total distribution cost. The proposed heuristic is compared with the existing methods. The comparison reveals that the proposed method provides solutions close to existing methods while having a simpler approach to its existing counterparts.
Keywords - supply chain, fixed charge, heuristic.