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A strategic model for exact supply chain network design and its application to a global manufacturer

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  • Christina Arampantzi
  • Ioannis Minis
  • Georgios Dikas

Abstract

This paper presents a comprehensive model that captures significant strategic decisions involved in designing or redesigning high-performance supply chains from the perspective of the manufacturer. The problem considers deterministic demand by multiple clients, for multiple products, over the periods of a long-term horizon. The design decisions involve selection of suppliers, establishment or resizing of production facilities and distribution centres, possible subcontracting of related activities, and selection of transportation modes and routes. The problem is formulated by a Mixed Integer Linear Programming model. Its objective is to minimise the overall costs associated with procurement, production, inventory, warehousing, and transportation over the design horizon. Appropriate constraints model the complex relationships among the links of the supply chain. The proposed model has been applied to a large case study of a global manufacturing firm, providing valuable insights into the transformation of the firm’s current supply chain network, as well as into the potential of the proposed approach.

Suggested Citation

  • Christina Arampantzi & Ioannis Minis & Georgios Dikas, 2019. "A strategic model for exact supply chain network design and its application to a global manufacturer," International Journal of Production Research, Taylor & Francis Journals, vol. 57(5), pages 1371-1397, March.
    • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:5:p:1371-1397
    DOI: 10.1080/00207543.2018.1489155
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    Cited by:

    1. Federico Toffano & Michele Garraffa & Yiqing Lin & Steven Prestwich & Helmut Simonis & Nic Wilson, 2022. "A multi-objective supplier selection framework based on user-preferences," Annals of Operations Research, Springer, vol. 308(1), pages 609-640, January.
    2. Amin Mahmoudi & Saad Ahmed Javed, 2022. "Probabilistic Approach to Multi-Stage Supplier Evaluation: Confidence Level Measurement in Ordinal Priority Approach," Group Decision and Negotiation, Springer, vol. 31(5), pages 1051-1096, October.
    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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