Multi-echelon Distribution Network Optimization Considering Dual-Source Replenishment Under Interruption Risk

This paper studies the regional warehouse location-inventory problem under the influence of interruption risk on the three-level distribution network of central warehouse, regional warehouse and store, considering that a store can be replenished by a central warehouse or a regional warehouse. A nonlinear 0–1 integer programming model is constructed, and the model is transformed into a linear 0–1 integer programming problem by using the piecewise linear approximation method. The location decision and inventory decision are realized by using the precise algorithm. The case study shows that considering dual-source replenishment under the risk of interruption can reduce the cost of regional warehouse construction, while considering the risk of interruption can reduce the possible emergency costs in the future.