58 Supply Chain Management and Logistics
inventory holding cost. Replenishment of raw material may happen more
than once during each period. Transportation ow quantities and produc-
tion quantities on each machine at each facility are also decision variables.
Benders decomposition is used as the solution methodology. In the mixed
integer master problem, the status of the facilities, the production lines, and
the production and inventory quantities are determined. The reduced prob-
lem becomes a minimum-cost transportation ow problem, and its optimal
cost is added to the mixed integer master problem to nd a feasible schedule
satisfying the obtained ow cost. The search terminates when the master
problem can nd no lower cost solutions. Fo