Inventory-Location Problem with Considering Lateral Transshipment Under Route-Like Demands

This paper analyzes the distribution system consisting of two logistics nodes, describes lateral transshipment strategy in this scenario, establishes a mathematical model of inventory-location problem with considering lateral transshipment under route-like demands, and designs a heuristic algorithm combining implicit enumeration method and linear programming algorithm. This paper verifies the necessity and feasibility of the model. It is concluded that taking into account the lateral transshipment strategy at the operational level affects the decision-making of facility's location at the strategic level and can reduce the total operating cost of the logistics nodes system.