Document Type: Research Paper

**Authors**

School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

**Abstract**

This study extends a mathematical model that integrates the location, allocation, inventory replenishment and routing decisions simultaneously. To cope with inherent uncertainty of parameters, we implement a continuous-time Markov process and derive the performance measures of the system. Using the obtained results, the problem is formulated as a mixed integer nonlinear programing model (MINLP), where the total costs of location, transportation and inventory are minimized. In addition,we develop a simulated annealing(SA)-based meta-heuristic algorithm to tackle the computational complexity of the problem. Finally, severalcomputational experimentsare provided to assess effectiveness of the proposed algorithm and the model.

**Keywords**

**Main Subjects**

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Volume 9, Issue 4

Autumn 2016

Pages 93-111