Optimal design of multi-echelon supply chain networks under normally distributed demand

Konstantinos Petridis ()

Annals of Operations Research, 2015, vol. 227, issue 1, 63-91

Abstract: This paper addresses the optimal design of a multiproduct, multi-echelon supply network under uncertainty of demand. The network consists of multiproduct production sites, warehouses and distribution centers and decisions about the selection of facilities and their capacity are taken. Furthermore, information about the flows of products transferred and the safety stock at each distribution center is derived. The lead time of an order to a customer is computed, using the probabilities of overstocking and understocking. All these decisions are incorporated into a single period mixed integer non-linear programming problem (MINLP) which minimizes cost. Linearization techniques for selected highly non-linear terms of the models are explored in order to reduce the computational effort for the solution of the model. Finally, a sensitivity analysis is performed by changing product demand parameters and assessing their effect on the supply chain structure. Copyright Springer Science+Business Media New York 2015

Keywords: Supply chain design; MINLP; Inventory management (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10479-013-1420-6 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:227:y:2015:i:1:p:63-91:10.1007/s10479-013-1420-6

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-013-1420-6

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().