Optimization modeling of an integrated supply chain network

Ali Diabat, Jean Philippe Richard

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In this paper, we develop a novel multi-echelon joint inventory-location problem that considers location and inventory decisions simultaneously. The model deals with the distribution of a single commodity from a single manufacturer to a set of retailers through a set of sites where distribution centers can be located. The retailers face deterministic demand and hold working inventory. We assume single sourcing in which the entire demand of a given retailer is served by a single distribution center. The distribution centers order a single commodity from the manufacturer at regular intervals and distribute the product to the retailers. The distribution centers, also, hold working inventory representing product that has been ordered from the manufacturer but has not been yet requested by any of the retailers. Lateral supplies among the distribution centers are not allowed. The problem is formulated as a nonlinear mixed-integer program. Model validation and benefit of integration are demonstrated via a numerical study.

Original languageEnglish (US)
Title of host publicationIEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages518-522
Number of pages5
DOIs
StatePublished - 2009
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009 - Hong Kong, China
Duration: Dec 8 2009Dec 11 2009

Publication series

NameIEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management

Other

OtherIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009
CountryChina
CityHong Kong
Period12/8/0912/11/09

Keywords

  • Facility location
  • Joint decisions
  • Joint inventory-location
  • Multi-echelon inventory
  • Supply chain
  • Supply chain integration

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Information Systems and Management
  • Industrial and Manufacturing Engineering
  • Safety, Risk, Reliability and Quality

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  • Cite this

    Diabat, A., & Richard, J. P. (2009). Optimization modeling of an integrated supply chain network. In IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management (pp. 518-522). [5373288] (IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management). https://doi.org/10.1109/IEEM.2009.5373288