A multi-phase mathematical programming approach for effective supply chain design

Abstract

A supply chain is an alliance of independent business processes, such as supplier, manufacturing, and distribution processes that perform the critical functions in the order fulfillment process. Effective design and management of supply chains assists in production and delivery of a variety of products at low cost, high quality, and short lead times. Although the importance of supply chain design is emphasized in the literature, few formal decision models have been proposed for this purpose. This paper presents a multi-phase mathematical programming approach for effective supply chain design. More specifically, the methodology develops and applies a combination of multi-criteria efficiency models, based on game theory concepts, and linear and integer programming methods. Model application and insights are detailed through numerical illustrations.