A Decision Processing Algorithm for CDC Location Under Minimum Cost SCM Network

Abstract

Location of CDC in the matter of network on Supply Chain is becoming on the high concern these days. Present status of methods on CDC has been mainly based on the calculation manually by the spread sheet to achieve the goal of minimum logistics cost. This study is focused on the development of new processing algorithm to overcome the limit of present methods, and examination of the propriety of this algorithm by case study. The algorithm suggested by this study is based on the principle of optimization on the directive GRAPH of SCM model and suggest the algorithm utilizing the traditionally introduced MST, shortest paths finding methods, etc. By the aftermath of this study, it helps to assess suitability of the present on-going SCM network and could be the criterion on the decision-making process for the optimal SCM network building-up for the demand prospect in the future. © Springer-Verlag Berlin Heidelberg 2007.