Publication Type

Working Paper

Version

publishedVersion

Publication Date

11-2004

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 | Operations and Supply Chain Management | Operations Research, Systems Engineering and Industrial Engineering

Research Areas

Intelligent Systems and Optimization

First Page

1

Last Page

20

Copyright Owner and License

Authors

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