Integrated production in multi-echelon supply chain design

EasyChair Preprint no. 838

Abstract

The design of a supply chain for a production-distribution system in multi-echelon network represents a three-level planning problem. Often, this global problem was decomposed into sub-problems and solved sequentially. Indeed, most papers consider the decision making of routing and inventory management in a second step after designing the network structure by solving the location problem in the first step. Recent articles have shown that this method of decomposition leads to a suboptimal solution. This paper focuses on modeling and solving a problem that combines location, fleet sizing, inventory management and production quantity in a deterministic planning horizon. The goal is to reduce the total cost. We propose a mathematical formulation based on a mixed integer linear programming (MILP) to solve this problem. The experimentations conducted on instances from the literature shows that integration of production has an influence on the solution and that ignoring this aspect generates additional costs.

Keyphrases: Conception de chaîne d’approvisionnement, Inventaire, Localisation, Multi-période, multi-échelons, production-distribution

@Booklet{EasyChair:838,
  author = {Akram Rekik and Mustapha Ouhimmou and Ali Gharbi},
  title = {Integrated production in multi-echelon supply chain design},
  howpublished = {EasyChair Preprint no. 838},

  year = {EasyChair, 2019}}