한국정보기술응용학회:학술대회논문집 (Proceedings of the Korea Society of Information Technology Applications Conference)

한국정보기술응용학회 (The Korea Society of Information Technology Applications)
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A Quantitative Model for a Supply Chain Design

  • Cho, Geon (School of Business Administration, Chonnam National University) ;
  • Ryu, Il (School of Business Administration, Sunchon National University) ;
  • Lee, Kyoung-Jae (School of Business Administration, Chonnam National University) ;
  • Park, Yi-Sook (School of Business Administration, Chonnam National University) ;
  • Jung, Kyung-Ho (School of Business Administration, Chonnam National University) ;
  • Kim, Do-Goan (School of Business Administration, Chonnam National University)
  • 발행 : 2005.11.25
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초록

Supply chain optimization is one of the most important components in the optimization of a company's value chain. This paper considers the problem of designing the supply chain for a product that is represented as an assembly bill of material (BOM). In this problem we are required to identify the locations at which different components of the product arc are produced/assembled. The objective is to minimize the overall cost, which comprises production, inventory holding and transportation costs. We assume that production locations are known and that the inventory policy is a base stock policy. We first formulate the problem as a 0-1 nonlinear integer programming model and show that it can be reformulated as a 0-1 linear integer programming model with an exponential number of decision variables.

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