A Heuristic Method for the two-stage Supply Chain Distribution Problem with Fixed Charge
A two-stage supply chain distribution problem with a fixed charge is considered in this paper. There
is a variable transportation cost that depends linearly on the quantity transported, and a fixed cost associated
with a route between a source and a destination when a non-zero quantity is transported. A heuristic method that
is influenced by Vogel’s approximation method has been proposed with the objective of minimizing the total
distribution cost. The proposed heuristic is compared with the existing methods. The comparison reveals that the
proposed method provides solutions close to existing methods while having a simpler approach to its existing
Keywords - supply chain, fixed charge, heuristic.