Tancrez, J.-S.Lange, J.-C.Semal, P.2013-07-262013-07-262013-07-26201210.1016/j.tre.2011.10.005https://infoscience.epfl.ch/handle/20.500.14299/93547WOS:000299803500008We study the location-inventory problem in three-level supply networks. Our model integrates three decisions: the distribution centers location, flows allocation, and shipment sizes. We propose a nonlinear continuous formulation, including transportation, fixed, handling and holding costs, which decomposes into a closed-form equation and a linear program when the DC flows are fixed. We thus develop an iterative heuristic that estimates the DC flows a priori, solves the linear program, and then improves the DC flow estimations. Extensive numerical experiments show that the approach can design large supply networks both effectively and efficiently, and a case study is discussed.Location-inventory modelFacility locationInventory managementThree-level supply chainReverse logisticsNetwork Design-ModelSafety Stock ConsiderationsDistribution-System-DesignSingle-Sourcing ProblemDistribution CentersWarehouse LocationFacility LocationLead TimeAlgorithmReversetext::journal::journal article::research article