The One-Period N-Location Distribution Problem: I.
MASSACHUSETTS INST OF TECH CAMBRIDGE OPERATIONS RESEARCH CENTER
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This paper studies the one-period, general network distribution problem with linear costs. The approach is to decompose the problem into a transportation problem that represents a stocking decision, and decoupled newsboy problems that represent the realization of demand with the usual associated holding and shortage costs. This approach leads to a characterization of optimal policies in terms of the dual of the transportation problem. Specifically, it is shown that there is a correspondence between the optimal policies and the extreme points, edges, faces, etc. of the dual feasible region. This method is not directly suitable for the solution for large problems but the exact solution for small problems can be obtained. Modified author abstract
- Operations Research