On the coordination of product and by-product flows in two-level distribution networks: model formulations and solution procedures

The problem of planning product and by-product flows for minimal-cost distribution in a two-level network is considered. The problem concerns the optimal locations of processing facilities and post-processing plants for minimizing capital costs and the cost of transporting the product and its by-products. To facilitate a solution, four models based on upper bounding and lower bounding heuristics are developed.