Raw materials management for time dependent supply chain network

Abstract

Purchasing raw materials from proper locations play an important role in supply chain network design. In this paper, a mathematical model is developed to optimize the cost of purchasing raw materials and transportation cost of these raw materials from market locations to production unit(s) to meet the demand of the products timely. This model is developed considering multiple products, single production unit and time dependent demands of the products. Capacity of the paths from market locations to production unit(s), demand of raw materials in each time interval and for each product are taken as constraints in this mathematical formulation. Key decisions of the formulation are suitable locations and purchasing amount of each raw material in each time interval. The proposed approach is examined with a standard data set in LINGO platform and efficacy is shown with optimality.