Physical Sciences and Mathematics Commons^™

Logistics Network Design With Differentiated Delivery Lead Time: A Chemical Industry Case Study, Michelle Lee Fong Cheong, Rohit Bhatnagar, Stephen C. Graves

Research Collection School Of Computing and Information Systems

Most logistics network design models assume exogenous customer demand that is independent of the service time or level. This paper examines the benefits of segmenting demand according to lead-time sensitivity of customers. To capture lead-time sensitivity in the network design model, we use a facility grouping method to ensure that the different demand classes are satisfied on time. In addition, we perform a series of computational experiments to develop a set of managerial insights for the network design decision making process.