Abstract
A third party logistic provider operates a distribution network with minimal control over supply and demand. The operation is characterized by three levels: a strategic level that includes the location and sizing of warehouses, a tactical level that determines the links between customers, warehouses and producers and an operational level that determines the size of the flows through the links at any given time. An algorithm to optimize the operational level is determined for a given network structure. Starting with a fully connected network a reduced network is found by deleting the least used links until the operational costs increase dramatically. The topological structures of the reduced network as a function of backlog and transportation costs are determined.
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Acknowledgments
This study was supported by the Koninklijke Frans Maas Groep. D. A. was supported by NSF grant DMS 0604986 and a grant by the Stiftung Volkswagenwerk under the program on Complex Networks.
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Armbruster, D., Hendriks, M.P.M., Lefeber, E., Udding, J.T. (2011). Structural Properties of Third-Party Logistics Networks. In: Kreowski, HJ., Scholz-Reiter, B., Thoben, KD. (eds) Dynamics in Logistics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-11996-5_1
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DOI: https://doi.org/10.1007/978-3-642-11996-5_1
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