IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v53y2015i12p3541-3560.html
   My bibliography  Save this article

Towards optimal configuration of a manufacturer’s supply network with demand flexibility

Author

Listed:
  • L.X. Cui

Abstract

Demand flexibility exhibits the degree to which customers are often willing to compromise on product features or performance levels for budgetary (reflected in price) or schedule (reflected in delivery) reasons. It is essential for a manufacturer to map demand flexibility into the supply side and investigate its impact on supply network configuration to maximise its total profit. This paper is among the first contributions that seek to address the challenge of optimal configuration of a manufacturer’s supply network that consists of raw material suppliers and contract manufacturers, considering demand flexibility and commonality among different product families. A new mixed integer programming model is developed to describe the characteristics of this problem. The objective was to maximise the manufacturer’s total profit subject to various operating constraints of the supply chain. In view of the complexity and non-deterministic polynomial-time (NP)-hard nature of the problem, a hybrid constraint programming and simulated annealing algorithm is proposed to solve the problem optimally. Extensive numerical studies are conducted to validate the effectiveness of the proposed model and the hybrid algorithm.

Suggested Citation

  • L.X. Cui, 2015. "Towards optimal configuration of a manufacturer’s supply network with demand flexibility," International Journal of Production Research, Taylor & Francis Journals, vol. 53(12), pages 3541-3560, June.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:12:p:3541-3560
    DOI: 10.1080/00207543.2014.980011
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2014.980011
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207543.2014.980011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tprsxx:v:53:y:2015:i:12:p:3541-3560. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.