Title
An algorithm for solving the multi-period online fulfillment assignment problem
Abstract
This paper develops an optimal solution procedure for the multi-period online fulfillment assignment problem to determine how many and which of a retailer/e-tailer's capacitated regional warehouse locations should be set up to handle online sales over a finite planning horizon. To reduce the number of candidate solutions in each period, dominance rules from the facility location literature are extended to handle the nonlinear holding and backorder cost implications of our problem. Computational results indicate that multi-period considerations can play a major role in determining the optimal set of online fulfillment locations. In 92% of our test problems, the multi-period solution incorporated fewer openings and closings than myopic single period solutions. To illustrate the use of the model under changing demands, the multi-period solution yielded different supply chain configurations than the myopic single period solution in over 37% of the periods.
Year
DOI
Venue
2009
10.1016/j.mcm.2009.04.024
Mathematical and Computer Modelling
Keywords
Field
DocType
multi-period consideration,online fulfillment location,facility location,myopic single period solution,backorder cost implication,test problem,supply chain management,online sale,multi-period,multi-period online fulfillment assignment,candidate solution,optimal solution procedure,multi-period solution,dual sales channel,supply chain,assignment problem
Mathematical optimization,Time horizon,Nonlinear system,Operations research,Facility location problem,Supply chain management,Assignment problem,Supply chain,Mathematics
Journal
Volume
Issue
ISSN
50
9-10
Mathematical and Computer Modelling
Citations 
PageRank 
References 
4
0.41
8
Authors
3
Name
Order
Citations
PageRank
Stephen Mahar1565.27
Kurt M. Bretthauer230023.24
M. A. Venkataramanan324520.52