 Multi-echelon supply chain network design in agile manufacturingFeng Pan and Rakesh Nagi Omega, 2013, vol. 41, issue 6, 969-983 Abstract: In this paper, we consider a supply chain network design problem in an agile manufacturing scenario with multiple echelons and multiple periods under a situation where multiple customers have heavy demands. Decisions in our supply chain design problem include selection of one or more companies in each echelon, production, inventory, and transportation. We formulate the problem integrating all decisions to minimize the total operational costs including fixed alliance costs between two companies, production, raw material holding, finished products holding, and transportation costs under production and transportation capacity limits. A Lagrangian heuristic is proposed in this paper. Optimizing a Lagrangian relaxation problem provides a lower bound, while a feasible solution is generated by adjustment techniques based on the solution of subproblems at each iteration. Computational results indicate the high quality solutions with less than 5% optimality gap are provided quickly by the approach in this paper. Further, compared to initiative managerial alternatives, an improvement of 15% to 25% is not unusual in certain cases for the proposed approach. Keywords: Agile manufacturing; Supply chain network design; Multi-echelon; Lagrangian heuristic (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:41:y:2013:i:6:p:969-983 Ordering information: This journal article can be ordered from DOI: 10.1016/j.omega.2012.12.004 Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
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