Determination of Network Configuration Considering Inventory Cost in a Supply Chain

In this paper we show the importance of applying mathem atical optimization when designing the distribution network in a supply chain, specifically in making decisions rela ted location of facilities and inventory management, which are associated with different levels of planning but are closely rel...

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Detalles Bibliográficos
Autores: N. M. Hernández González, A. Álvarez Socarrás, M. Mata Pérez
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2014
País:México
Institución:Universidad Autónoma de Nuevo León
Repositorio:Redalyc-UANL
OAI Identifier:oai:redalyc.org:47431860005
Acceso en línea:https://www.redalyc.org/articulo.oa?id=47431860005
Access Level:acceso abierto
Palabra clave:Ingeniería
Supply chain
location and inventory problem
mixed integer linear programming
mixed integer nonlinear programming
Descripción
Sumario:In this paper we show the importance of applying mathem atical optimization when designing the distribution network in a supply chain, specifically in making decisions rela ted location of facilities and inventory management, which are associated with different levels of planning but are closely related. The addressed problem is an extension of the classic capacitat ed facility location problem. The distinguishing features are: the inventory management, the presenc e of multiple plants, and the single source constraints in both echelons. A key issue is that demand at each distribution center is a fu nction of the demands at the re tailers assigned, which is a random variable whose value is not known at the time of designing the network. We focus on the mathematical modeling of the problem and the evaluat ion of the performance of the developed models, so, it can be observed the troubles that arise when modeling supply chains that consider different types of decisions.