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Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction

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  • Nagurney, Anna

Abstract

In this paper, we propose a framework for supply chain network design and redesign that allows for the determination of the optimal levels of capacity and operational product flows associated with supply chain activities of manufacturing, storage, and distribution at minimal total cost and subject to the satisfaction of product demands. We formulate both the design and redesign problems as variational inequalities and show that the same algorithm, which exploits the underlying network structure, can be used for the solution of either problem. We illustrate the new framework with numerical examples that demonstrate the practicality and flexibility of the approach.

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  • Nagurney, Anna, 2010. "Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction," International Journal of Production Economics, Elsevier, vol. 128(1), pages 200-208, November.
    • Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:200-208
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    Cited by:

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    5. Fattahi, Mohammad & Mahootchi, Masoud & Govindan, Kannan & Moattar Husseini, Seyed Mohammad, 2015. "Dynamic supply chain network design with capacity planning and multi-period pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 169-202.
    6. Juan Jos¨¦ Uchuya Lop¨¦z & Raad Yahya Qassim, 2017. "An Optimal Redesign Approach for Optimal Global Supply Chain Redesign: Brazilian Soybean Grain Study," Business and Management Horizons, Macrothink Institute, vol. 5(2), pages 84-111, December.
    7. Kieran P. Donaghy, 2012. "The Co-evolution of Logistics, Globalization and Spatial Price Competition: Implications for a Unified Theory of Trade and Location," Chapters, in: Roberta Capello & Tomaz Ponce Dentinho (ed.), Globalization Trends and Regional Development, chapter 3, Edward Elgar Publishing.
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