Supply Chain Optimization

Supply Chain Optimization captures the latest results in a segment of current research activity in supply chain management. This research area focuses on applying optimization techniques to supply chain management problems. The research pap

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Applied Optimization VOLUME 98 Series Editors: Panos M. Pardalos University of Florida, U.S.A. Donald W. Heam University of Florida, U.S.A.

SUPPLY CHAIN OPTIMIZATION

Edited by JOSEPH GEUNES University of Florida, Gainesville, U.S.A. PANOS M. PARDALOS University of Florida, Gainesville, U.S.A.

Springer

Library of Congress Cataloging-ln-Publication Data Supply chain optimization/ edited by Joseph Geunes, Panos M. Pardalos. p. cm. — (Applied optimization ; v. 98) Includes bibliographical references. ISBN 0-387-26280-6 (alk. paper) - ISBN 0-387-26281-4 (e-book) 1. Business logistics. 2. Delivery of goods, i. Geunes, Joseph. II. Pardalos, P.M. (Panos M.), 1954-111. Series. HD38.5.S89615 2005 658.7'2-dc22 2005049768 AMS Subject Classifications: 90B50, 90B30, 90B06, 90B05 lSBN-10: 0-387-26280-6 e-ISBN-10: 0-387-26281-4

lSBN-13: 978-0387-26280-2 e-ISBN-13: 978-0387-26281-9

© 2005 Springer Science+Business Media, Inc. All rights reserved. This work may not be translated or copied in whole or m part without the written permission of the publisher (Springer Science+Business Media, Inc., 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now know or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks and similar terms, even if the are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed in the United States of America. 9 8 7 6 5 4 3 2 1 springeronline.com

SPIN 11498841

Contents

Preface 1 Information Centric Optimization of Inventories in Capacitated Supply Chains: Three Illustrative Examples Srinagesh Gavirneni

vii 1

2

An Analysis of Advance Booking Discount Programs between Competing Retailers Kevin F. McCardle, Kumar Rajaram, Christopher S. Tang 3 Third Party Logistics Planning with Routing and Inventory Costs Alexandra M. Newman^ Candace A. Yano, Philip M. Kaminsky

51

87

4

Optimal Investment Strategies for Flexible Resources, Considering Pricing Ebru K. Bish

123

5 Multi-Channel Supply Chain Design in B2C Electronic Commerce Wei-yu Kevin Chiang, Dilip Chhajed

145

6 Using Shapley Value to Allocate Savings in a Supply Chain John J. Bartholdi III, Eda Kemahhoglu-Ziya

169

Service Facility Location and Design with Pricing and WaitingTime Considerations Michael S. Pangburn, Euthemia Stavrulaki

209

A Conceptual Framework for Robust Supply Chain Design under Demand Uncertainty Yin Mo and Terry P. Harrison

243

vi

SUPPLY CHAIN

OPTIMIZATION

9

The Design of Production-Distribution Networks: A Mathematical Programming Approach Alain Martel 10 Modeling & Solving Stochastic Programming Problems in Supply Chain Management Using Xpress-SP Alan Dormer, Alkis Vazacopoulos, Nitin Verma, and Horia Tipi 11 Dispatching Automated Guided Vehicles in a Container