Title

Logistics Network Design with Differentiated Delivery Lead Time: A Chemical Industry Case Study

Publication Type

Working Paper

Publication Date

2005

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.

Keywords

Logistics Network Design, Demand Classes, Benefits, Insights

Discipline

Artificial Intelligence and Robotics | Business | Operations Research, Systems Engineering and Industrial Engineering

Research Areas

Intelligent Systems and Decision Analytics