Development of a new approach for deterministic supply chain network design
This paper proposes a mixed integer linear programming model and solution algorithm for solving supply chain network design problems in deterministic, multi-commodity, single-period contexts. The strategic level of supply chain planning and tactical level planning of supply chain are aggregated to p...
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| Format: | Article |
| Language: | English English |
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Elsevier
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/7017/1/Development%20of%20a%20new%20approach%20for%20deterministic%20supply%20chain%20network%20design.pdf |
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| author | Bidhandi, Hadi Mohammadi Mohd. Yusuff, Rosnah Megat Ahmad, Megat Mohamad Hamdan Abu Bakar, Mohd Rizam |
| author_facet | Bidhandi, Hadi Mohammadi Mohd. Yusuff, Rosnah Megat Ahmad, Megat Mohamad Hamdan Abu Bakar, Mohd Rizam |
| author_sort | Bidhandi, Hadi Mohammadi |
| collection | UPM |
| description | This paper proposes a mixed integer linear programming model and solution algorithm for solving supply chain network design problems in deterministic, multi-commodity, single-period contexts. The strategic level of supply chain planning and tactical level planning of supply chain are aggregated to propose an integrated model. The model integrates location and capacity choices for suppliers, plants and warehouses selection, product range assignment and production flows. The open-or-close decisions for the
facilities are binary decision variables and the production and transportation flow decisions are continuous decision variables. Consequently, this problem is a binary mixed integer linear programming problem. In this paper, a modified version of Benders’ decomposition is proposed to solve the model. The most difficulty associated with the Benders’ decomposition is the solution of master problem, as in many reallife problems the model will be NP-hard and very time consuming. In the proposed procedure, the master
problem will be developed using the surrogate constraints. We show that the main constraints of the master problem can be replaced by the strongest surrogate constraint. The generated problem with the strongest surrogate constraint is a valid relaxation of the main problem. Furthermore, a near-optimal initial solution is generated for a reduction in the number of iterations. |
| first_indexed | 2024-03-06T07:11:00Z |
| format | Article |
| id | upm.eprints-7017 |
| institution | Universiti Putra Malaysia |
| language | English English |
| last_indexed | 2024-03-06T07:11:00Z |
| publishDate | 2008 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | upm.eprints-70172015-09-04T03:41:01Z http://psasir.upm.edu.my/id/eprint/7017/ Development of a new approach for deterministic supply chain network design Bidhandi, Hadi Mohammadi Mohd. Yusuff, Rosnah Megat Ahmad, Megat Mohamad Hamdan Abu Bakar, Mohd Rizam This paper proposes a mixed integer linear programming model and solution algorithm for solving supply chain network design problems in deterministic, multi-commodity, single-period contexts. The strategic level of supply chain planning and tactical level planning of supply chain are aggregated to propose an integrated model. The model integrates location and capacity choices for suppliers, plants and warehouses selection, product range assignment and production flows. The open-or-close decisions for the facilities are binary decision variables and the production and transportation flow decisions are continuous decision variables. Consequently, this problem is a binary mixed integer linear programming problem. In this paper, a modified version of Benders’ decomposition is proposed to solve the model. The most difficulty associated with the Benders’ decomposition is the solution of master problem, as in many reallife problems the model will be NP-hard and very time consuming. In the proposed procedure, the master problem will be developed using the surrogate constraints. We show that the main constraints of the master problem can be replaced by the strongest surrogate constraint. The generated problem with the strongest surrogate constraint is a valid relaxation of the main problem. Furthermore, a near-optimal initial solution is generated for a reduction in the number of iterations. Elsevier 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/7017/1/Development%20of%20a%20new%20approach%20for%20deterministic%20supply%20chain%20network%20design.pdf Bidhandi, Hadi Mohammadi and Mohd. Yusuff, Rosnah and Megat Ahmad, Megat Mohamad Hamdan and Abu Bakar, Mohd Rizam (2008) Development of a new approach for deterministic supply chain network design. European Journal of Operational Research, 198 (1). pp. 121-128. ISSN 0377-2217 http://dx.doi.org/10.1016/j.ejor.2008.07.034 10.1016/j.ejor.2008.07.034 English |
| spellingShingle | Bidhandi, Hadi Mohammadi Mohd. Yusuff, Rosnah Megat Ahmad, Megat Mohamad Hamdan Abu Bakar, Mohd Rizam Development of a new approach for deterministic supply chain network design |
| title | Development of a new approach for deterministic supply chain network design |
| title_full | Development of a new approach for deterministic supply chain network design |
| title_fullStr | Development of a new approach for deterministic supply chain network design |
| title_full_unstemmed | Development of a new approach for deterministic supply chain network design |
| title_short | Development of a new approach for deterministic supply chain network design |
| title_sort | development of a new approach for deterministic supply chain network design |
| url | http://psasir.upm.edu.my/id/eprint/7017/1/Development%20of%20a%20new%20approach%20for%20deterministic%20supply%20chain%20network%20design.pdf |
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