Supply chain network design optimization model for multi-period multi-product

Abstract

Supply chain management (SCM) is the management of the flow of goods and services. It includes the movement and storage of raw materials, inventory, and finished goods from point of origin to point of consumption. In this paper, the supply chain network is mathematically modeled in a mixed integer linear programming (MILP) form considering multi-product, multi-period, multi-echelons and associated cost elements. The model represent both location and allocation decisions of the supply chain which maximizes the total profit. Model outputs have proved its ability to design multi-product, multi-period, multi-echelons networks. In general, the results have shown the effect of customers' demands from each product in each period in the quantities of material delivered from each supplier too each facility, the quantities of each product delivered from each facility and facility store to each distributor, the inventory of each product in each facility and distributor, the quantities of each type of product delivered from each distributor to each customer in each period. The model has been verified through a detailed example and the implementation of the proposed model has been demonstrated using some numerical example.