Design and Operation of an Enterprise-wide Process Network Using Operation Policies. 1. Design

Abstract

In recent years there has been great industrial and academic interest in the design and operation of enterprise-wide supply chains because of their economic impact under increasingly competitive and narrow profit environments. In this two-paper series, a new modeling framework is presented in order to establish systematic and effective decision support tools for the enterprise-wide supply chains which consist of a large number of industrial production elements such as suppliers, plants, and demands that may be in geographically distinct places. Particularly in part 1, the focus is how to incorporate multiple nodes for the purpose of designing the supply chain. After showing an example to motivate the need of an operating policy in the design of multiple plants, three operating policies, namely, coordination, cooperation, and competition are proposed. Mixed integer linear programming (MILP) models based on these policies are then presented. An illustrative example is presented to demonstrate the potential of the proposed framework. Uncertainty is also one of the most important issues. Therefore in part 2, the effect of uncertainty will be investigated in detail using multiperiod planning models based on the proposed operating policies.