Integrated supply chain optimization model using mathematical programming and continuous approximation.

摘要

This research presents an integrated approach to optimize the different functions in a supply chain on strategic and operational levels. This overall optimization is achieved using mathematical programming for modeling the supply chain functions such as capacitated location, production, and distribution (CLPD) functions. Continuous approximation is then used to optimize the inventory costs, penalty costs, and transportation costs. These two techniques have been used in a phased manner to achieve combined optimization results for the different decisional levels in a multi-product multi-echelon production-distribution system. The integrated supply chain model has been formulated as a profit maximization problem and solved using computer software in the first phase. Results from this mathematical formulation are used in the second phase along with continuous approximation of inventory distribution patterns. It is then followed by application of classical optimization techniques for determination of closed form expressions for optimal number of shipments.