Designing Two-Echelon Distribution Network under Demand Uncertainty
Abstract
The delivery of freight from manufacturing platforms to demand zones is often managed through one or more intermediate locations where storing, merging, transshipment and consolidation activities are performed. We design a Two-Echelon Distribution Network that helps syncrhonize different flows of product. Under demand uncertainty, our model integrates decisions on the locations and the size of second echelon facilities an decisions on the flows assignment between the echelons, and on delivery routes to serve the demand zones.