Le Thi Hoai An, Nguyen Trong Phuc, Pham Dinh Tao: "A Continuous DC Programming Approach To The Strategic Supply Chain Design Problem From Qualified Partner Set".

Abstract: We present a new continuous approach based on the DC (difference of convex functions) programming and DC algorithms (DCA) to the problem of supply chain design at the strategic level when production of a new market opportunity has to be launched among a set of qualified partners. A well known formulation of this problem is the mixed integer linear program. In this paper, we reformulate this problem as a DC program by using an exact penalty technique. The proposed algorithm is a combination of DCA and Branch and Bound scheme. It works in a continuous domain but provides mixed integer solutions. Numerical simulations on many empirical data sets show the efficiency of our approach with respect to the standard Branch and Bound algorithm.

 

Keywords: DC ProgrammingDCAMixed Integer programmingExact penalty techniquesBranch and bound techniques; Supply chain design. 

 

Citation: Le Thi Hoai An, Nguyen Trong Phuc, Pham Dinh Tao, A Continuous DC Programming Approach To The Strategic Supply Chain Design Problem From Qualified Partner Set, European Journal of Operational Research 183: 1001-1012, 2007. 

 

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