A joint replenishment inventory location model

Copyright © Springer Science+Business Media, LLC 2012.We introduce a distribution center location model that incorporates joint replenishment inventory costs at the distribution centers. The model is formulated as a Fixed Charge Location Problem (FCLP) which objectively considers not only location specific costs but also inventory replenishment costs. In the joint replenishment problem we consider a single item and several distribution centers in different locations and apply a similar algorithm to the one used to solve the multi-item problem. We propose a Greedy Randomized Adaptive Search Procedure (GRASP) to solve the problem