Supply Chain Network Design - a Model and its Applications

공급사슬망 설계를 위한 수리모형 수립 및 응용

  • Published : 2004.11.01

Abstract

Great effort has been exerted to redesign the supply chain network as a means to improve corporate competitiveness. In this study, we present a mathematical model and a solution system to help redesign corporate logistics networks. The objective of the model is to minimize total logistics costs. We applied the solution system to real problem cases. We use the model and the concept to develop decision support system that is based on C++ with the use of CPLEX callable library as a solution engine. We tested and verified the DSS for redesigning the network of a large Korean electronics company. Through various scenario analyses. we recommend to redesign their supply chain network that demonstrates the possibility of substantial logistics cost savings.

Keywords

References

  1. Abdinnour-Helm, S., 'Network design in supply chain management,' International Journal of Agile Management Systems, Vol.1, No.2(1999), pp.99-106 https://doi.org/10.1108/14654659910280929
  2. Aldred, K, 'Supply chain problems cost companies millions,' IIE Solutions, Vol.30, No.5(May 1998), pp.11-13
  3. Al-Sultan, K.S. and M.A. Al-Fawzan, 'A tabu search approach to the uncapacitated facility location problem,' Annals of Operations Research, Vol.86(1999), pp.91-103
  4. Bertazzi, L. and M.G. Speranza, 'Minimizing Logistic Costs in Multistage Supply Chains,' Naval Research Logistics, Vol.46 (1999), pp.399-417
  5. Canel, C. and S.R. Das, 'The uncapacitated multi-period facilities location problem with profit maximization,' International Journal of Physical Distribution & Logistics Management, Vol.29, No.6(1999), pp.409-433 https://doi.org/10.1108/09600039910283640
  6. Chardaire, P., J.L. Lutton and A. Sutter, 'Upper and lower bounds for the two-level simple plant location problem,' Annals of Operations Research, Vol.86(1999), pp.117-140
  7. Drezner, Z. and S. Salhi, 'Using Hybrid Metaheuristics for the One-Way and Two-Way Network Design Problem,' Naval Research Logistics, Vol.49(2002), pp.449-463
  8. Ganeshan, R., 'Managing supply chain inventories : a multiple retailer, one warehouse, multiple supplier model,' International journal of Production Economics, Vol.59(1999), pp.341-354
  9. Gibson, W.D., 'Getting a grip on the supply chain,' Chemical Engineering, Vol.105, No. 12(Nov. 1998), pp.35-39
  10. Hanfield, R.B. and E.L. Nichols Jr., Introduction to Supply Chain Management, Prentice-Hall, 1996.
  11. Jayaraman, V., 'Transportation, facility location and inventory issues in distribution network design: An investigation,' International journal of Operations & Production Management, Vol.18, No.5(1998), pp. 471-494 https://doi.org/10.1108/01443579810206299
  12. Korpela, J. and A. Lehmusvaara, 'A customer oriented approach to warehouse network evaluation and design,' International journal of Production Economics, Vol.59 (1999), pp.135-146
  13. Marin, A. and B. Pelegrin, 'Applying Lagrangian relaxation to the resolution of two-stage location problems,' Annals of Operations Research, Vol.86(1999), pp.179-198
  14. Pirkul, H. and V. Jayaraman, 'A Multicommodity, Multi-plant, Capacitated Facility Location Problem: Formulation and Efficient Heuristic Solution,' Computers & Operations Research, Vol.25, No.10(1998), pp.869-878 https://doi.org/10.1016/S0305-0548(97)00096-8
  15. Quinn, F.J., 'Building a world-class supply chain,' Logistics, (June 1998), pp.38-43
  16. Spalding, J.O, 'Transportation industry takes the right-of-way in the supply chain,' IIE Solutions, Vol.30, No.7(July 1998), pp.24-28
  17. Sundaram, R.M. and S.G. Mehta, 'A comparative study of three different SCM approaches,' International journal of Physical Distribution & Logistics Management, Vol.32, No.7(2002), pp.532-555 https://doi.org/10.1108/09600030210442577