Multi-echelon supply chain network design

摘要

In this paper, we consider a supply chain network design problem with multiple echelons and multiple periods undera situation where multiple customers have heavy demands. Decisions in our supply chain design problem include se-lectionof companies in each echelon, production, inventory, and transportation. We formulate the problem integratingall decisions to minimize the total operational costs including fixed alliance costs between two companies, produc-tion,raw material holding, finished products holding, and transportation costs under production and transportationcapacity limits. A solution approach based on Lagrangean relaxation is proposed for large-size problems. Compu-tationalresults indicate the high quality of feasible solutions provided by the solution approach developed in this paper.