Abstract
We propose a supply chain design model that captures the impacts of delivery lead time constraints on the supply chain design decisions. Indeed, we impose that, for every customer order over the planning horizon, the delivery lead time must not exceed the lead time required by the customer. The delivery lead time is calculated based on the model decisions of suppliers selection, facility location, inventory placement, etc. We explicitly model the inventory replenishment conditions between successive orders and consider multiple final products and multiple customers. The model is linearized and solved with Cplex. We finally conduct computational experiments and derive insights.
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