An integrated optimization model for single-product supply chain network design considering supplier selection

Abstract

Supply chain management has become increasingly important due to its predominant role for companies to survive in today's rapid-changing market. Managing supply chain in an efficient and effective manner will maximize both profitability and sustainability of the companies within it. Supply chain network design (SCND) is one of the most important strategic decisions in supply chain management and therefore has never lost its appeal to both researchers and practitioners. This paper presents a novel research on the network design of a simplified single-product multi-sourcing multi-facility supply chain. The proposed optimization model incorporates supplier selection with SCND, which is rarely referred in previous literature, and aims to determine the optimal supply chain network configuration in terms of the number and locations of facilities, material flows and supplier selection. Furthermore, numerical experimentation and discussion for future development are also presented for giving a deep insight of this paper.