Determination of Network Configuration Considering Inventory Cost in a Supply Chain

 

N. M. Hernández González*¹, A. Álvarez Socarrás¹ and M. Mata Pérez²

 

¹ Universidad Autónoma de Nuevo León, Posgrado en Ingeniería de Sistemas, San Nicolás de los Garza, Nuevo León, México. *nelly@yalma.fime.uanl.mx

² Universidad Autónoma de Nuevo León, Posgrado en Logística y Cadena de Suministros, San Nicolás de los Garza, Nuevo León, México.

 

ABSTRACT

In this paper we show the importance of applying mathematical optimization when designing the distribution network in a supply chain, specifically in making decisions related location of facilities and inventory management, which are associated with different levels of planning but are closely related.

The addressed problem is an extension of the classic capacitated facility location problem. The distinguishing features are: the inventory management, the presence of multiple plants, and the single source constraints in both echelons. A key issue is that demand at each distribution center is a function of the demands at the retailers assigned, which is a random variable whose value is not known at the time of designing the network. We focus on the mathematical modeling of the problem and the evaluation of the performance of the developed models, so, it can be observed the troubles that arise when modeling supply chains that consider different types of decisions.

Keywords: Supply chain, location and inventory problem, mixed integer nonlinear programming, mixed integer linear programming.

 

RESUMEN

En este artículo se muestra la importancia de la optimización matemática en el diseño de una cadena de suministros, específicamente en la toma de decisiones dentro de un problema de localización de instalaciones y un problema de inventarios. Dichas decisiones pertenecen a diferentes niveles de planeación aun así se encuentran estrechamente relacionadas.

El problema es una extensión del clásico problema de localización de instalaciones capacitadas. Las características destacadas son: el manejo de inventarios, la presencia de múltiples plantas y las restricciones de única fuente en ambos niveles de la cadena. Un punto clave en la investigación consiste en definir la demanda de los centros de distribución como función de la demanda de los minoristas asignados, la cual es una variable aleatoria, cuyo valor es desconocido al momento de diseñar la red de distribución. Nos enfocamos en la modelación matemática del problema y en la evaluación del desempeño de los modelos desarrollados, de manera que es posible observar la dificultad que involucra modelar cadenas de suministros que consideran diferentes tipos de decisiones.

 

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Acknowledgment

This work was partially supported by the Mexican National Council of Science and Technology (GRANT CB 167019) and Universidad Autonóma de Nuevo León under project IT764-11 PAICYT-UANL. These supports are gratefully acknowledged.

 

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