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A design model and a production–distribution and inventory planning model in multi-product supply chain networks

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  • Kostis Taxakis
  • Chrissoleon Papadopoulos

Abstract

Supply chain network (SCN) design implicates decision-making at a strategic level. That includes selecting the right suppliers and determining the number and the location of plants, distribution centres and retailers. An apt design model of the supply chain is imperative for the proper function of the supply chain and consequently for making better operational decisions in an attempt of a continuous improvement. In this paper, we propose two models. The first model is a mixed-integer linear programming model which is concerned with the SCN design problem, whereas the second operational model is a mixed-integer non-linear programming model in respect to the production–distribution and inventory planning problem in a supply chain network. The number of customers and suppliers as well as their demand and capacities are assumed to be known in both models. Two steady-state genetic algorithms were implemented in MATLAB in order to solve both the design and the operational model. The results were compared with GAMS. Some examples were devised in order to demonstrate potential ways of use for the designer of the supply chain network, as well as for the supply chain manager.

Suggested Citation

  • Kostis Taxakis & Chrissoleon Papadopoulos, 2016. "A design model and a production–distribution and inventory planning model in multi-product supply chain networks," International Journal of Production Research, Taylor & Francis Journals, vol. 54(21), pages 6436-6457, November.
    • Handle: RePEc:taf:tprsxx:v:54:y:2016:i:21:p:6436-6457
    DOI: 10.1080/00207543.2016.1158882
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    1. Boudia, M. & Prins, C., 2009. "A memetic algorithm with dynamic population management for an integrated production-distribution problem," European Journal of Operational Research, Elsevier, vol. 195(3), pages 703-715, June.
    2. Chan, Felix T. S. & Chung, S. H. & Wadhwa, Subhash, 2005. "A hybrid genetic algorithm for production and distribution," Omega, Elsevier, vol. 33(4), pages 345-355, August.
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    4. Mirzapour Al-e-hashem, S.M.J. & Malekly, H. & Aryanezhad, M.B., 2011. "A multi-objective robust optimization model for multi-product multi-site aggregate production planning in a supply chain under uncertainty," International Journal of Production Economics, Elsevier, vol. 134(1), pages 28-42, November.
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    Cited by:

    1. Hêris Golpîra, 2017. "Robust bi-level optimization for an opportunistic supply chain network design problem in an uncertain and risky environment," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 27(1), pages 21-41.
    2. Darmawan, Agus & Wong, Hartanto & Thorstenson, Anders, 2021. "Supply chain network design with coordinated inventory control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    3. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.

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