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This paper presents a novel approach to the design of distribution networks for fast-moving consumer goods (FMCG) that optimizes both location and inventory decisions while ensuring a high fill-rate service level. The authors formulate a joint location-inventory model as a convex mixed-integer nonlinear programming (MINLP) problem and propose a decomposition-based outer approximation algorithm to solve it, achieving solutions close to optimal. The study highlights the importance of fill-rate in managing sho

Author

tkclone2nd

Language

EN