A hybrid MILP and simulation approach for redesigning a fresh product network

We present a hybrid approach for redesigning a fresh product network, i.e. optimizing the locations of facilities and allocation of processes and inventory with respect to costs, product quality and responsiveness. As products are perishable and have a short life time, a redesign should be evaluated at a detailed level, taking both demand and supply uncertainty and product quality requirements into account. We iteratively solve an MILP model and run a simulation, to check and adjust the MILP constraints, until a feasible solution is found.