Application of Linear Programming Model for Industrial Supply Chain Network Design
A Case Study
Keywords:
Linear Programming Mode, Network Design, Optimization, Case Study, Supply ChainAbstract
A Linear Programming Model (LPM) capturing many practical aspects of network design problems and the optimization techniques, like transportation model, to be used were introduced in this study. The objective is to design the supply chain (SC) network so as to minimize annual system-wide costs and improve service level requirements, thereafter increase market share. This is because at current practices most companies do not have a means to sense real situations at their SC. The design approaches employed here followed three major methods namely data collection and aggregation; modeling and data validation; and use of solution techniques to produce a good optimized result. Finally, a general LPM that simultaneously locates multi plant and warehouses is applied to the case company that results in optimization of current network, design of new SC network, and large cost savings.
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