With respect to a two-echelon distribution network with one production facility, multiple distribution centers and retailers, a hi-level programming method is proposed to establish the model of location inventory routing problem based on the process of logistic deci- sion-making practice. In the hi-level model, the upper level is to determine the optimal location while the lower is to decide the optimal in- ventory control policy and vehicle routing schedules. A bi-level simulated annealing algorithm is presented to solve the model and several in- stances of the problem with sizes varying from...
