Achieving Alignment in Production and Logistics Operations in Three Echelon Supply Chain Network Through New Heuristic Optimizer

Abstract

During the past decade, great studies have been made in the development of standardized tools for supply chain modeling and network optimization Network optimization is the most basic type of modeling that can be performed with tools which helps to identity optimum paths or flow of goods in supply chain network. In this case, the network is defined by the flow of finished goods from origin to destination. Network modeling becomes more complex as the dimensions and scope of the supply chain expand Uncertainties in the supply chain usually increase the variance of profit or cost to the company, increasing the likely hood of decreased profit i.e. increase in total supply chain cost. Demand uncertainty and constraints posed by the every echelon are important factors to be considered in the supply chain design operations. This chapter specifically deals with the modeling and optimization of a three echelon supply chain network architecture using new Particle Swarm Optimization algorithm.