Simultaneous product family and supply chain design: An optimization approach

Bertrand Baud-Lavigne, Bruno Agard and Bernard Penz

International Journal of Production Economics, 2016, vol. 174, issue C, 111-118

Abstract: This paper deals with the difficult problem of joint product family and supply chain design. We present a general model that simultaneously considers the construction of the bill of materials and the design of the supply chain network. For the bill of materials, product, sub-assembly and component substitution possibilities are considered. For the supply chain network, facility and distribution center location are considered as well as the choice of suppliers. A Mixed Integer Linear Program (MILP) model is proposed. The MILP formulation is solved optimally for medium-sized instances. For larger instances, two heuristics derived from the MILP are designed. These methods are computationally tested on various instances from a generator conceived for this purpose. The modelling of product substitution possibilities through product transformation permits the solving of large size instances that are now adequate for real problems.

Keywords: Supply chain design; Product family design; Mixed Integer Linear Programming (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:174:y:2016:i:c:p:111-118

DOI: 10.1016/j.ijpe.2016.01.015

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