Planning the Strategic Production and Distribution System for New Products

摘要

Planning a supply chain for a new product requires addressing demand and cost uncertainty and changes in market conditions over time. We develop a supply chain model that consists of a multi-period mixed-integer linear program that determines production capacities, distribution locations and material flows. The weighted average model finds an overall solution for all identified scenarios. This model also addresses the financial viability of the company by constraining the minimum net cash position. To manage cash flow, the model allows facilities to open and close over time. This allows investment decisions to be revisited when more current forecasts are available.