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Optimal postponement in supply chain network design under uncertainty: an application for additive manufacturing

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  • Daniel Ramón-Lumbierres
  • F. Javier Heredia Cervera
  • Joaquim Minguella-Canela
  • Asier Muguruza-Blanco

Abstract

This study presents a new two-stage stochastic programming decision model for assessing how to introduce some new manufacturing technology into any generic supply and distribution chain. It additionally determines the optimal degree of postponement, as represented by the so-called customer order decoupling point (CODP), while assuming uncertainty in demand for multiple products. To this end, we propose here the formulation of a generic supply chain through an oriented graph that represents all the deployable alternative technologies, which are defined through a set of operations that are characterised by lead times and cost parameters. Based on this graph, we develop a mixed integer two-stage stochastic programme that finds the optimal manufacturing technology for meeting each market’s demand, each operation’s optimal production quantity, and each selected technology’s optimal CODP. We also present and analyse a case study for introducing additive manufacturing technologies.

Suggested Citation

  • Daniel Ramón-Lumbierres & F. Javier Heredia Cervera & Joaquim Minguella-Canela & Asier Muguruza-Blanco, 2021. "Optimal postponement in supply chain network design under uncertainty: an application for additive manufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 59(17), pages 5198-5215, September.
  • Handle: RePEc:taf:tprsxx:v:59:y:2021:i:17:p:5198-5215
    DOI: 10.1080/00207543.2020.1775908
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    Cited by:

    1. Jimo, Ajeseun & Braziotis, Christos & Rogers, Helen & Pawar, Kulwant, 2022. "Additive manufacturing: A framework for supply chain configuration," International Journal of Production Economics, Elsevier, vol. 253(C).
    2. 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.
    3. Zhiming Shi & Yisong Li & Gábor Bohács & Qiang Zhou, 2022. "A Study on Optimal Location Selection and Semi-Finished Product Inventory Allocation in the Steel Industry," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    4. Belhadi, Amine & Kamble, Sachin S. & Venkatesh, Mani & Chiappetta Jabbour, Charbel Jose & Benkhati, Imane, 2022. "Building supply chain resilience and efficiency through additive manufacturing: An ambidextrous perspective on the dynamic capability view," International Journal of Production Economics, Elsevier, vol. 249(C).

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