Antonio Alonso Ayuso, Laureano F. Escudero, Celeste Pizarro, H. Edwin Romeijn, Dolores Romero Morales
On solving the multi-period single-sourcing problem
under uncertainty
We present a framework for solving the strategic problem of assigning retailers to
facilities in a multi-period single-sourcing product environment under uncertainty
in the demand from the retailers and the cost of production, inventory holding,
backlogging and distribution of the product. By considering a splitting variable
mathematical representation of the Deterministic Equivalent Model, we specialize
the so-called Branch-and-Fix Coordination algorithmic framework. It exploits the
structure of the model and, specifically, the non-anticipativity constraints for the
assignment variables. The algorithm uses the Twin Node Family (TNF) concept.
Our procedure is specifically designed for coordinating the selection of the branching
TNF and the branching S3 set, such that the non-anticipativity constraints are
satisfied. Some computational experience is reported.