A supply chain is a system which moves products from a supplier to customers.The supply chains are ubiquitous. They play a key role in all economicactivities. Inspired by biological principles of nutrients' distribution inprotoplasmic networks of slime mould Physarum polycephalum we propose a novelalgorithm for a supply chain design. The algorithm handles the supply networkswhere capacity investments and product flows are variables. The networks areconstrained by a need to satisfy product demands. Two features of the slimemould are adopted in our algorithm. The first is the continuity of a fluxduring the iterative process, which is used in real-time update of the costsassociated with the supply links. The second feature is adaptivity. The supplychain can converge to an equilibrium state when costs are changed. Practicalityand flexibility of our algorithm is illustrated on numerical examples.
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