scholarly journals Optimal Supply Chain Network with Multi-Echelon

2019 ◽  
Vol 7 (2) ◽  
pp. 102-115
Author(s):  
Zaher Hamad Alsalem ◽  
Ramkumar Harikrishnakumar ◽  
Vatsal Maru ◽  
Krishna Krishnan
Keyword(s):  
Supply Chain ◽  
Supply Chain Design ◽  
Mixed Integer ◽  
Supply Chain Network ◽  
Objective Functions ◽  
Distribution Centers ◽  
Single Product ◽  
Study Objective ◽  
Total Cost ◽  
Customer Service Level

The study of the effect of redistribution strategy and aggregation, on a multi-echelon supply chain network by managing demand volatility is discussed in this research. For this an operational supply chain design is considered. Multi-echelon network consisting of manufacturing plants, distribution centers, warehouses, and retailers is used to develop the case study. Aggregation strategy was analyzed in the context of single product and multi-product for a multi-period production problem under demand uncertainty. Product sourcing between echelons and distribution strategies are considered for the study. Objective was to use the redistribution strategy to optimize the objective functions for the network. The objective functions include minimization of total cost, minimization of overage and stock-out conditions, and maximization of the customer service level. The total cost function includes product flow, transportation cost and distance cost. The mathematical formulation is carried out in Mixed Integer Linear Programming (MILP) with the help of Generic Algebraic Modeling System (GAMS). Problem formulation considers three type of demand based on volatility and uncertainty cases as high, medium, and low. The research is divided into three main phases to discuss an optimal multi-echelon supply chain network for single product using aggregation strategy.

scholarly journals Supply chain optimization with variable demand by considering financial criteria and scenarios

2017 ◽  
Vol 26 (44) ◽  
pp. 21 ◽  
Author(s):  
John Willmer Escobar
Keyword(s):  
Supply Chain ◽  
Large Scale ◽  
Net Present Value ◽  
Programming Model ◽  
Supply Chain Design ◽  
Mixed Integer ◽  
Supply Network ◽  
Distribution Centers ◽  
Supply Chain Optimization ◽  
Starting Point

This paper contemplates the supply chain design problem of a large-scale company by considering the maximization of the Net Present Value. In particular, the variability of the demand for each type of product at each customer zone has been estimated. As starting point, this paper considers an established supply chain for which the main problem is to determine the decisions regarding expansion of distribution centers. The problem is solved by using a mixed-integer linear programming model, which optimizes the different demand scenarios. The proposed methodology uses a scheme of optimization based on the generation of multiple demand scenarios of the supply network. The model is based on a real case taken from a multinational food company, which supplies to the Colombian and some international markets. The obtained results were compared with the equivalent present costs minimization scheme of the supply network, and showed the importance and efficiency of the proposed approach as an alternative for the supply chain design with stochastic parameters.

scholarly journals Combined Use of Mathematical Optimization and Design of Experiments for the Maximization of Profit in a Four-Echelon Supply Chain

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-25 ◽  
Author(s):  
Daniel Arturo Olivares Vera ◽  
Elias Olivares-Benitez ◽  
Eleazar Puente Rivera ◽  
Mónica López-Campos ◽  
Pablo A. Miranda
Keyword(s):  
Supply Chain ◽  
Design Of Experiments ◽  
Mathematical Optimization ◽  
Fractional Factorial ◽  
Mixed Integer ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Cost Component ◽  
Allocation Model

This paper develops a location-allocation model to optimize a four-echelon supply chain network, addressing manufacturing and distribution centers location, supplier selection and flow allocation for raw materials from suppliers to manufacturers, and finished products for end customers, while searching for system profit maximization. A fractional-factorial design of experiments is performed to analyze the effects of capacity, quality, delivery time, and interest rate on profit and system performance. The model is formulated as a mixed-integer linear programming problem and solved by using well-known commercial software. The usage of factorial experiments combined with mathematical optimization is a novel approach to address supply chain network design problems. The application of the proposed model to a case study shows that this combination of techniques yields satisfying results in terms of both its behavior and the obtained managerial insights. An ANOVA analysis is executed to quantify the effects of each factor and their interactions. In the analyzed case study, the transportation cost is the most relevant cost component, and the most relevant opportunity for profit improvement is found in the factor of quality. The proposed combination of methods can be adapted to different problems and industries.

scholarly journals Designing a Supply Chain Network under the Risk of Disruptions

2012 ◽  
Vol 2012 ◽  
pp. 1-23 ◽  
Author(s):  
Armin Jabbarzadeh ◽  
Seyed Gholamreza Jalali Naini ◽  
Hamid Davoudpour ◽  
Nader Azad
Keyword(s):  
Supply Chain ◽  
Supply Chain Design ◽  
Mixed Integer ◽  
Nonlinear Program ◽  
Supply Chain Network ◽  
Large Problem ◽  
Solution Methods ◽  
Total Profit ◽  
Order Quantities ◽  
Problem Instances

This paper studies a supply chain design problem with the risk of disruptions at facilities. At any point of time, the facilities are subject to various types of disruptions caused by natural disasters, man-made defections, and equipment breakdowns. We formulate the problem as a mixed-integer nonlinear program which maximizes the total profit for the whole system. The model simultaneously determines the number and location of facilities, the subset of customers to serve, the assignment of customers to facilities, and the cycle-order quantities at facilities. In order to obtain near-optimal solutions with reasonable computational requirements for large problem instances, two solution methods based on Lagrangian relaxation and genetic algorithm are developed. The effectiveness of the proposed solution approaches is shown using numerical experiments. The computational results, in addition, demonstrate that the benefits of considering disruptions in the supply chain design model can be significant.

Modeling of Green Supply Chain Logistics

2010 ◽  
pp. 268-282 ◽  
Author(s):  
Hsin-Wei Hsu
Keyword(s):  
Supply Chain ◽  
Mixed Integer Linear Programming ◽  
Programming Model ◽  
Minimum Cost ◽  
Mixed Integer ◽  
Green Supply Chain ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Supply Chain Logistics ◽  
The Subject

The green supply chain management has drawn researchers’ attention in recent years, but most of the proposed models for green topics on the subject are case based, and for this reason, they lack generality. In this work, the design of a supply chain network is studied. In this chapter, we try to overcome this limitation and a generalized model is proposed, in which a logistics chain network problem is formulated into a 0-1 mixed integer linear programming model and the decisions for the function of manufactures, distribution centers, and dismantlers will be suggested with minimum cost. A numerical example is provided for illustration.

Modeling of Green Supply Chain Logistics

2011 ◽  
pp. 327-341
Author(s):  
Hsin-Wei Hsu
Keyword(s):  
Supply Chain ◽  
Mixed Integer Linear Programming ◽  
Programming Model ◽  
Minimum Cost ◽  
Mixed Integer ◽  
Green Supply Chain ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Supply Chain Logistics ◽  
The Subject

The green supply chain management has drawn researchers’ attention in recent years, but most of the proposed models for green topics on the subject are case based, and for this reason, they lack generality. In this work, the design of a supply chain network is studied. In this chapter, we try to overcome this limitation and a generalized model is proposed, in which a logistics chain network problem is formulated into a 0-1 mixed integer linear programming model and the decisions for the function of manufactures, distribution centers, and dismantlers will be suggested with minimum cost. A numerical example is provided for illustration.

scholarly journals Closed-Loop Supply Chain Design with Sustainability Aspects and Network Resilience under Uncertainty: Modelling and Application

2021 ◽  
Vol 2021 ◽  
pp. 1-23
Author(s):  
Komeyl Baghizadeh ◽  
Julia Pahl ◽  
Guiping Hu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Optimal Solution ◽  
Supply Chain Design ◽  
Mixed Integer ◽  
Distribution Centers ◽  
Closed Loop Supply Chain ◽  
Proposed Model ◽  
Network Flexibility ◽  
Uncertainty Parameters

In this study, we present a multiobjective mixed-integer nonlinear programming (MINLP) model to design a closed-loop supply chain (CLSC) from production stage to distribution as well as recycling for reproduction. The given network includes production centers, potential points for establishing of distribution centers, retrieval centers, collecting and recycling centers, and the demand points. The presented model seeks to find optimal locations for distribution centers, second-hand product collection centers, and recycling centers under the uncertainty situation alongside the factory’s fixed points. The purpose of the presented model is to minimize overall network costs including processing, establishing, and transportation of products and return flows as well as environmental impacts while maximizing social scales and network flexibility according to the presence of uncertainty parameters in the problem. To solve the proposed model with fuzzy uncertainty, first, the improved epsilon (ε)-constraints approach is used to transform a multiobjective to a single-objective problem. Afterward, the Lagrangian relaxation approach is applied to effectively solve the problem. A real-world case study is used to evaluate the performance of the proposed model. Finally, sensitivity analysis is performed to study the effects of important parameters on the optimal solution.

scholarly journals Leagile supply chain network design through a dynamic two-phase optimization in view of Order Penetration Point

2020 ◽  
Author(s):  
Masoud Rabbani ◽  
Soroush Aghamohamadi Bosjin ◽  
Neda Manavizadeh
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Agile Manufacturing ◽  
Service Level ◽  
Second Phase ◽  
Supply Chain Network ◽  
Industrial Case Study ◽  
Total Cost ◽  
Proposed Model ◽  
Customer Service Level

In the contemporary world, combining the concept of agile and lean manufacturing (LM) is one of the most strategic and appealing concerns in the industrial environments. In this paper, a new Leagile structure is proposed for a supply chain. This research covers long term and mid-term horizon by designing a supply chain network up to the order penetration point (OPP) and final assembly and sale planning respectively. The problem is programmed in two phases. First, a bi-objective optimization is developed to minimize the total cost related with LM. In the second phase, the total cost and the customer service level (CSL) are considered as the agile manufacturing (AM) architecture. In the proposed model, a utility function is applied to set balance between the price and customer satisfaction. In addition, a robust credibility-based fuzzy programming (RCFP) is developed to handle uncertainty of the first phase. The proposed model and the solution method are implemented for a real industrial case study to show the applicability and usefulness of this study. According to the results, improving the customer service level can enhance the total cost of the second phase meaning that customer responsiveness price is too high for the proposed system.

The Optimization of Costs of Supply Chain Network

2015 ◽  
Vol 741 ◽  
pp. 801-805
Author(s):  
Zhuo Dai
Keyword(s):  
Supply Chain ◽  
Programming Model ◽  
Transportation Cost ◽  
Raw Material ◽  
Mixed Integer ◽  
Variable Cost ◽  
Fixed Cost ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Penalty Cost

This research proposes a muti-echelon supply chain network design model. The model includes raw material suppliers, manufacturers, distribution centers, and customer zones. The purpose of this research is to minimize the total costs of supply chain network. The total costs include transportation cost, fixed cost, variable cost, penalty cost. This model is a mixed integer linear programming model. In general, it is very difficult to solve the model. In order to solve the model, Cplex12.6 is used. The results show that this model can be solved by this mathematical programming software well.

The Design of Closed-Loop Supply Chain Network

2015 ◽  
Vol 744-746 ◽  
pp. 1910-1914
Author(s):  
Zhuo Dai
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Programming Model ◽  
Raw Material ◽  
Mixed Integer ◽  
Variable Cost ◽  
Fixed Cost ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Closed Loop Supply Chain

This paper designs a model of muti-echelon closed-loop supply chain network (CLSC network). CLSC network includes raw material suppliers, manufacturers, distribution centers, collection centers and customer zones. The purpose of this paper is to minimize the overall costs of CLSC network. The overall costs include transportation cost, fixed cost, variable cost, penalty cost. This model is a mixed integer linear programming model. In general, it is very difficult to solve the model. Cplex12.6 is used in order to deal with this model. The results show that this model can be solved by Cplex12.6 well.

Robust Hazardous Materials Closed-Loop Supply Chain Network Design with Emergency Response Teams Location

2021 ◽  
pp. 036119812199207
Author(s):  
Nasrin Mohabbati-Kalejahi ◽  
Alexander Vinel
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Emergency Response ◽  
Closed Loop ◽  
Hazardous Materials ◽  
Risk Exposure ◽  
Supply Chain Network Design ◽  
Supply Chain Network ◽  
Distribution Centers ◽  
Closed Loop Supply Chain

Hazardous materials (hazmat) storage and transportation pose threats to people’s safety and the environment, which creates a need for governments and local authorities to regulate such shipments. This paper proposes a novel mathematical model for what is termed the hazmat closed-loop supply chain network design problem. The model, which can be viewed as a way to combine several directions previously considered in the literature, includes two echelons in the forward direction (production and distribution centers), three echelons in the backward direction (collection, recovery, and disposal centers), and emergency response team positioning. The two objectives of minimizing the strategic, tactical, and operational costs as well as the risk exposure on road networks are considered in this model. Since the forward flow of hazmat is directly related to the reverse flow, and since hazmat accidents can occur at all stages of the lifecycle (storage, shipment, loading, and unloading, etc.), it is argued that such a unified framework is essential. A robust framework is also presented to hedge the optimization model in case of demand and return uncertainty. The performance of both models is evaluated based on a standard dataset from Albany, NY. Considering the trade-offs between cost and risk, the results demonstrate the design of efficient hazmat closed-loop supply chain networks where the risk exposure can be reduced significantly by employing the proposed models.

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