A Mixed-Integer Programming Model to Configure a Post Supply Chain Network

Abstract

Points of distribution, sales or service are important elements of the supply chain. These are the final elements which are responsible for proper functioning of the whole cargo distribution process. Proper location of these points in the transport network is essential to ensure the effectiveness and reliability of the supply chain. The location of these points is very important also from the consumer’s point of view. In this paper, a mathematical model is proposed to design of a post supply chain network to minimize transportation cost, facilities location cost and holding cost. The proposed supply chain network consists of four echelons: supplier, post office, distribution center, and recipient. The bold point of this study is as regards the post supply chain is examined, the demand of the recipient’s point determines in supplier point not in delivery point. Finally, the proposed model is solved by LINGO 17 software and the results are analyzed.