Research Project: Mathematical Modeling for Supply Chain Management Control
Research Project
Mathematical Programming Based Modeling
For Supply Chain Management Control
Muhammad Faisal
Department of Engineering Management, Abasyn University, Islamabad, Pakistan.
Abstract
Economic globalization has forced and is still forcing enterprises to develop new global manufacturing and distribution concepts. A growing number of products are produced in multiple plants dispersed around the globe. This paper designs and discusses a mathematical model of international supply chain which leads to a better understanding of the complex process flows within a multi-location enterprise’s production network. Besides the consumption during production activities, this system also takes into account the consumption caused due to the dispersed feature of the supply chain, i.e., the transportation costs. After that, a linear programming model based on input-output account is applied to find the optimal solutions of the production and distribution decisions for Walmart supply chain. Conclusions are given at the end of this paper.
Index Terms: Mathematical Programming Based Modeling, mixed integer linear programming model, supply chain management, input output model.
I. Introduction.
A supply chain can be defined as an integrated process consists of a number of various business entities including suppliers, manufacturers, distributors, and retailers. They work together in an effort to acquire raw materials, convert them into specified final products, and finally deliver these final products to retailers. See Figure 1.
Figure 1
In the management context, the literature focuses on the coordination of all supply chain components for reducing costs while maintaining a high level of customer-service. Recently, due to a number of changes in the manufacturing environment, there has been an increasing attention placed on the performance, design, and analysis of the supply
Mathematical Programming Based Modeling
For Supply Chain Management Control
Muhammad Faisal
Department of Engineering Management, Abasyn University, Islamabad, Pakistan.
Abstract
Economic globalization has forced and is still forcing enterprises to develop new global manufacturing and distribution concepts. A growing number of products are produced in multiple plants dispersed around the globe. This paper designs and discusses a mathematical model of international supply chain which leads to a better understanding of the complex process flows within a multi-location enterprise’s production network. Besides the consumption during production activities, this system also takes into account the consumption caused due to the dispersed feature of the supply chain, i.e., the transportation costs. After that, a linear programming model based on input-output account is applied to find the optimal solutions of the production and distribution decisions for Walmart supply chain. Conclusions are given at the end of this paper.
Index Terms: Mathematical Programming Based Modeling, mixed integer linear programming model, supply chain management, input output model.
I. Introduction.
A supply chain can be defined as an integrated process consists of a number of various business entities including suppliers, manufacturers, distributors, and retailers. They work together in an effort to acquire raw materials, convert them into specified final products, and finally deliver these final products to retailers. See Figure 1.
Figure 1
In the management context, the literature focuses on the coordination of all supply chain components for reducing costs while maintaining a high level of customer-service. Recently, due to a number of changes in the manufacturing environment, there has been an increasing attention placed on the performance, design, and analysis of the supply
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