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Dual Market Facility Network Design under Bounded Rationality

Mogale, D.G.; Lahoti, Geet; Jha, Shashi; Shukla, Manish; Kamath, Narasimha; Tiwari, Manoj

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Authors

D.G. Mogale

Geet Lahoti

Shashi Jha

Manish Shukla

Narasimha Kamath

Manoj Tiwari



Abstract

A number of markets, geographically separated, with different demand characteristics for different products that share a common component, are analyzed. This common component can either be manufactured locally in each of the markets or transported between the markets to fulfill the demand. However, final assemblies are localized to the respective markets. The decision making challenge is whether to manufacture the common component centrally or locally. To formulate the underlying setting, a newsvendor modeling based approach is considered. The developed model is solved using Frank-Wolfe linearization technique along with Benders’ decomposition method. Further, the propensity of decision makers in each market to make suboptimal decisions leading to bounded rationality is considered. The results obtained for both the cases are compared.

Citation

Mogale, D., Lahoti, G., Jha, S., Shukla, M., Kamath, N., & Tiwari, M. (2018). Dual Market Facility Network Design under Bounded Rationality. Algorithms, 11(4), Article 54. https://doi.org/10.3390/a11040054

Journal Article Type Article
Acceptance Date Apr 16, 2018
Online Publication Date Apr 20, 2018
Publication Date Apr 20, 2018
Deposit Date Jun 28, 2018
Publicly Available Date Jun 28, 2018
Journal Algorithms
Publisher MDPI
Peer Reviewed Peer Reviewed
Volume 11
Issue 4
Article Number 54
DOI https://doi.org/10.3390/a11040054
Public URL https://durham-repository.worktribe.com/output/1322985

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