A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization

This paper applies a mixed integer linear programming to designing a multi echelon supply chain network (SCN) via optimizing commodity transportation and distribution of a SCN. Proposed model attempts to aim multi objectives of SCN by considering total transportation costs and capacities of all eche...

Повний опис

Збережено в:
Бібліографічні деталі
Опубліковано в: :Системні дослідження та інформаційні технології
Дата:2010
Автори: Paksoy, T., Özceylan, E., Weber, G.-W.
Формат: Стаття
Мова:Англійська
Опубліковано: Навчально-науковий комплекс "Інститут прикладного системного аналізу" НТУУ "КПІ" МОН та НАН України 2010
Теми:
Онлайн доступ:https://nasplib.isofts.kiev.ua/handle/123456789/50068
Теги: Додати тег
Немає тегів, Будьте першим, хто поставить тег для цього запису!
Назва журналу:Digital Library of Periodicals of National Academy of Sciences of Ukraine
Цитувати:A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization / T. Paksoy, E. Özceylan, G.-W. Weber // Систем. дослідж. та інформ. технології. — 2010. — №4. — С. 47-57. — Бібліогр.: 26 назв. — англ.

Репозитарії

Digital Library of Periodicals of National Academy of Sciences of Ukraine
_version_ 1859949406973853696
author Paksoy, T.
Özceylan, E.
Weber, G.-W.
author_facet Paksoy, T.
Özceylan, E.
Weber, G.-W.
citation_txt A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization / T. Paksoy, E. Özceylan, G.-W. Weber // Систем. дослідж. та інформ. технології. — 2010. — №4. — С. 47-57. — Бібліогр.: 26 назв. — англ.
collection DSpace DC
container_title Системні дослідження та інформаційні технології
description This paper applies a mixed integer linear programming to designing a multi echelon supply chain network (SCN) via optimizing commodity transportation and distribution of a SCN. Proposed model attempts to aim multi objectives of SCN by considering total transportation costs and capacities of all echelons. The model composed of three different objective functions. The first one is minimizing the total transportation costs between all echelons. Second one is minimizing of holding and ordering costs in distribution centers (DCs) and the last objective function is minimizing the unnecessary and unused capacity of plants and DCs. Застосовується змішане лінійне цілочислове програмування до побудови багатоешелонної мережі поставок (SCN) за допомогою оптимізації перевезень і розподілу в SCN. Запропонована модель дозволяє враховувати багато задач SCN за допомогою розгляду загальних витрат на транспортування і місткості всіх ешелонів. У модель включено три різні цільові функції: перша — мінімізує повні вартості перевезень між усіма ешелонами; друга — мінімізує витрати від збереження і вартості замовлення в центрах розподілу (DCs), а остання цільова функція мінімізує зайву і невикористану потужність заводів і DCs. Применяется смешанное линейное целочисленное программирование к построению многоэшелонной сети поставок (SCN) посредством оптимизации перевозок и распределения в SCN. Предложенная модель позволяет учесть многие задачи SCN посредством рассмотрения общих затрат на транспортировку и емкостей всех эшелонов. В модель включены три различные целевые функции: первая — минимизирует полные стоимости перевозок между всеми эшелонами; вторая — минимизирует затраты от сохранения и стоимости заказа в центрах распределения (DCs), а последняя целевая функция минимизирует излишнюю и неиспользованную способность заводов и DCs.
first_indexed 2025-12-07T16:16:03Z
format Article
fulltext © T. Paksoy, E. Özceylan, G.-W. Weber, 2010 Системні дослідження та інформаційні технології, 2010, № 4 47 УДК 519.854.2 A MULTI-OBJECTIVE MIXED INTEGER PROGRAMMING MODEL FOR MULTI ECHELON SUPPLY CHAIN NETWORK DESIGN AND OPTIMIZATION TURAN PAKSOY, EREN ÖZCEYLAN, GERHARD-WILHELM WEBER This paper applies a mixed integer linear programming to designing a multi echelon supply chain network (SCN) via optimizing commodity transportation and distribu- tion of a SCN. Proposed model attempts to aim multi objectives of SCN by con- sidering total transportation costs and capacities of all echelons. The model com- posed of three different objective functions. The first one is minimizing the total transportation costs between all echelons. Second one is minimizing of holding and ordering costs in distribution centers (DCs) and the last objective function is mini- mizing the unnecessary and unused capacity of plants and DCs. 1. INTRODUCTION Supply chain management has been a hot topic in the management arena in the recent years. The term «supply chain» conjures up images of products, or sup- plies, moving from manufacturers to distributors to retailers to customers, along a chain, in order to fulfill a customer request (Gong et al., 2008). Supply chain management (SCM) explicitly recognizes interdependencies and requires effective relationship management between chains. The challenge in global SCM is the development of decision-making frameworks that accommo- date diverse concerns of multiple entities across the supply chain. Considerable efforts have been expended in developing decision models for supply chain prob- lems (Narasimhan and Mahapatra, 2004). Enterprises have to satisfy customers with a high service level during stand- ing high transportation, raw material and distribution costs. In traditional supply chains, purchasing, production, distribution, planning and other logistics functions are handled independently by decision makers although supply chains have dif- ferent objectives. To overcome global risks in related markets, decision makers are obliged to fix a mechanism which different objective functions (minimizing transportation/production, backorder, holding, purchasing costs and maximizing profit and customer service level etc.) can be integrated together. Illustration of a supply chain network includes suppliers, plants, DCs and customers in Fig. 1 (Syarif et al., 2002). The design of SC networks is a difficult task because of the intrinsic com- plexity of the major subsystems of these networks and the many interactions among these subsystems, as well as external factors such as the considerable multi objective functions (Gumus et al., 2009). In the past, this complexity has forced much of the research in this area to focus on individual components of supply chain networks. Recently, however, attention has increasingly been placed on the performance, design, and analysis of the supply chain as a whole. T. Paksoy, E. Özceylan, G.-W. Weber ISSN 1681–6048 System Research & Information Technologies, 2010, № 4 48 Supply chains performance measures are categorized as qualitative and quantitative. Customer satisfaction, flexibility, and effective risk management belong to qualitative performance measures. Quantitative performance measures are also categorized by: (1) objectives that are based directly on cost or profit such as cost minimization, sales maximization, profit maximization, etc. and (2) objectives that are based on some measure of customer responsiveness such as fill rate maximization, customer response time minimization, lead time minimization, etc (Altiparmak et al., 2006). However, the SCM design and planning is usually involving trade-offs among different goals. In this study, we developed a mixed integer linear pro- gramming model to design and optimize a supply chain network via providing multi objective functions mentioned above together. We considered three objec- tives for SCM problem: (1) minimization of total transportation costs between suppliers-manufacturers-distribution centers and distribution costs between distri- bution centers and customers, (2) minimization of holding and ordering costs in DCs based EOQ (economic order quantity) and (3) providing equity of the capac- ity utilization ratio of manufacturers and DCs. In this field, numerous researches are conducted. (Williams, 1981), devel- oped seven heuristic algorithms to minimize distribution and production costs in supply chain. (Cohen and Lee, 1989), present a deterministic, mixed integer, non- linear programming with economic order quantity technique to develop global supply chain plan. (Pyke and Cohen), 1993, developed a mathematical program- ming model by using stochastic sub-models to design an integrated supply chain involves manufacturers, warehouses and retailers. (Özdamar and Yazgaç, 1997), developed a distribution/production system involves a manufacturer center and its warehouses. They try to minimize total costs such as inventory; transportation Fig. 1. Illustration of a Supply Chain Network (Syarif et al. 2002) A multi-objective mixed integer programming model for multi echelon supply … Системні дослідження та інформаційні технології, 2010, № 4 49 costs etc under production capacity and inventory equilibrium constraints. (Petrovic et al., 1999), modeled supply chain behaviors under fuzzy constraints. Their model showed that, uncertain customer demands and deliveries play a big role about behaviors. (Syarif et al., 2002), developed a new algorithm based ge- netic algorithm to design a supply chain distribution network under capacity con- straints for each echelon. (Yan et al., 2003), tried to contrive a network which in- volves suppliers, manufacturers, distribution centers and customers via a mixed integer programming under logic and material requirements constraints. (Yılmaz, 2004), handled a strategic planning problem for three echelon supply chain in- volves suppliers, manufacturers and distribution centers to minimize transporta- tion, distribution, production costs. (Chen and Lee, 2004), developed a multi- product, multi-stage, and multi-period scheduling model to deal with multiple incommensurable goals for a multi-echelon supply chain network with uncertain market demands and product prices. The uncertain market demands are modeled as a number of discrete scenarios with known probabilities, and the fuzzy sets are used for describing the sellers’ and buyers’ incompatible preference on product prices. The supply chain scheduling model is constructed as a mixed-integer nonlinear programming problem to satisfy several conflict objectives, such as fair profit distribution among all participants, safe inventory levels, maximum cus- tomer service levels, and robustness of decision to uncertain product demands, therein the compromised preference levels on product prices from the sellers and buyers point of view are simultaneously taken into account. (Nagurney and Toyasaki, 2005), try to balance e-cycling in multi tiered supply chain process. (Gen and Syarif, 2005), developed a hybrid genetic algorithm for a multi period multi product supply chain network design. (Paksoy, 2005), developed a mixed integer linear programming to design a multi echelon supply chain network under material requirement constraints. (Lin et al., 2007), compared flexible supply chains and traditional supply chains with a hybrid genetic algorithm and men- tioned advantages of flexible ones. (Wang, 2007), explained the imbalance be- tween echelons with peccant supply chain by changing chain’s perfect balanced. He used ant colony technique to minimize costs in peccant imbalanced supply chains. (Azaron et al., 2008), developed a multi-objective stochastic programming approach for supply chain design under uncertainty. Demands, supplies, process- ing, transportation, shortage and capacity expansion costs are all considered as the uncertain parameters. Their multi-objective model includes (i) the minimization of the sum of current investment costs and the expected future processing, trans- portation, shortage and capacity expansion costs, (ii) the minimization of the vari- ance of the total cost and (iii) the minimization of the financial risk or the prob- ability of not meeting a certain budget. (You and Grossmann, 2008), addressed the optimization of supply chain design and planning under responsive criterion and economic criterion with the presence of demand uncertainty. By using a probabilistic model for stock-out, the expected lead time is proposed as the quan- titative measure of supply chain responsiveness. (Schütz et al., 2008), presented a supply chain design problem modeled as a sequence of splitting and combining processes. They formulated the problem as a two-stage stochastic program. The first-stage decisions are strategic location decisions, whereas the second stage consists of operational decisions. The objective is to minimize the sum of invest- T. Paksoy, E. Özceylan, G.-W. Weber ISSN 1681–6048 System Research & Information Technologies, 2010, № 4 50 ment costs and expected costs of operating the supply chain. (Tuzkaya and Önüt, 2009), developed a model to minimize holding inventory and penalty cost for suppliers, warehouse and manufacturers based a holononic approach. (Sourirajan et al., 2009), considered a two-stage supply chain with a production facility that replenishes a single product at retailers. The objective is to locate distribution cen- ters in the network such that the sum of facility location, pipeline inventory, and safety stock costs is minimized. They use genetic algorithms to solve the model and compare their performance to that of a Lagrangian heuristic developed in ear- lier work. (Ahumada and Villalobos, 2009), reviewed the main contributions in the field of production and distribution planning for agri-foods based on agricul- tural crops. Through their analysis of the current state of the research, they diag- nosed some of the future requirements for modeling the supply chain of agri- foods. (Gunasekaran and Ngai, 2009), have developed a unified framework for modeling and analyzing BTO-SCM and suggest some future research directions. (Xu and Nozick, 2009), formulated a two-stage stochastic program and a solution procedure to optimize supplier selection to hedge against disruptions. Their model allows for the effective quantitative exploration of the trade-off between cost and risks to support improved decision-making in global supply chain design. (Shin et al., 2009), provided buying firms with a useful sourcing policy decision tool to help them determine an optimum set of suppliers when a number of sourcing al- ternatives exist. They proposed a probabilistic cost model in which suppliers’ quality performance is measured by inconformity of the end product measure- ments and delivery performance is estimated based on the suppliers’ expected delivery earliness and tardiness. After giving the introduction and the relevant literature, At the second sec- tion, the proposed model which is a multi objective mixed integer linear pro- gramming model is presented. We tested the novel model with a numerical exam- ple and discussed the results obtained by LINGO package programmer at the last section. 2. PROBLEM STATEMENT Here, the constituted model represents three echelons, multi supplier, multi manu- facturer, multi DC, and multi customer problem. Decision maker wishes to design of SC network for the end product, select suppliers, determine the manufacturers and DCs and design the distribution network strategy that will satisfy all capaci- ties and demand requirement for the product imposed via customers. The problem is a single-product, multi-stage SCN design problem. Considering company man- agers’ objectives, we formulated the SCN design problem as a multi-objective mixed-integer non-linear programming model. The objectives are minimization of the total cost of supply chain, minimization holding and ordering costs in DCs, and maximization of capacity utilization balance for DCs (i.e. equity on utiliza- tion ratios). The assumptions used in this problem are: (1) the number of custom- ers and suppliers and their demand and capacities are known, (2) the number of plants and DCs and their maximum capacities are known, (3) customers are sup- plied product from a single DC. Fig. 2 presents a simple network of three-stages in supply chain network. A multi-objective mixed integer programming model for multi echelon supply … Системні дослідження та інформаційні технології, 2010, № 4 51 2.1 Model Variables and Parameters. i is an index for customers ( Ii∈ ), j is an index for DCs ( Jj∈ ), k is an index for manufacturing plants ( Kk∈ ), s is an index for suppliers ( Ss∈ ), skb is the quantity of raw material shipped from supplier s to plant k , kjf is the quantity of the product shipped from plant k to DC j , jiq is the quantity of the product shipped from DC j to customer i , ⎩ ⎨ ⎧ = otherwise, 0, ,customer serves is DC if 1, i y ji kD is the capacity of plant k , ssup is the capacity of supplier s for raw material, jW is distribution ca- pacity of DC j , id is the demand for the product at customer i , jic is the unit transportation cost for the product from DC j to customer i , kja is the unit transportation cost for the product from plant k to DC j , skt is the unit transpor- tation and purchasing cost for the raw material from supplier s to plant c, hc is the holding cost per year at DC j , S is ordering cost to manufacturer k from each of DCs. 2.2 Objective Function, Constraints. 1f is the total cost of SCN. It includes the variable costs of transportation raw material from suppliers to manufacturers and the transportation the product from plants to customers through DCs. 2f is annual holding and ordering cost of products in DCs according to the economic order quantity (EOQ) model. Fig. 2. Supply Chain Network of Proposed Model 1 2 3 4 5 1 2 3 4 1 2 3 1 2 3 Customers T. Paksoy, E. Özceylan, G.-W. Weber ISSN 1681–6048 System Research & Information Technologies, 2010, № 4 52 3f is the equity of the capacity utilization ratio for manufacturers and DCs, and it is measured by mean square error (MSE) of capacity utilization ratios. The smaller value is, the closer the capacity utilization ratio for every manufacturer and DC is, thus ensuring the demand are fairly distributed among the DCs and manufacturers, and so it maximizes the capacity utilization balance. ∑∑∑∑∑∑ ++= j i jijikj k j kj s k sksk qcfabtf1Minimize ; (1) ∑ ⎥ ⎥ ⎥ ⎥ ⎥ ⎥ ⎦ ⎤ ⎢ ⎢ ⎢ ⎢ ⎢ ⎢ ⎣ ⎡ ∑ + ∑ ∑ = j h k kj h h k kj k kj c fS c c fS fS f 2 2 2 Minimize 2 ; (2) + − = ∑ ∑ ∑∑ ∑∑ k DfDf f k k j k kkj j kkj 2 3 )]/()/[( Minimize ∑ ∑ ∑∑ ∑∑ − + j WqWq j j i i iji i jji 2)]/()/[( ; (3) iy j ji∑ ∀=1 , (4) jWyd j jjii∑ ∀≤ , (5) jiydq jiiji ,∀= , (6) jqf i ji k kj ∀==∑∑ , (7) kb k ssk∑ ∀≤ sup , (8) kbf j s skkj∑ ∑ ∀≤ , (9) kDf j kkj∑ ∀≤ , (10) jiy ji ,}1,0{ ∀= , (11) skjiqfb jikjsk ,,,0 ∀≥ . (12) The model is composed of three objective functions (Eq. 1–3). The first ob- jective function (Eq. 1) defines minimizing shipment costs between suppliers, manufacturers, DCs and customers. The second objective function is minimizing A multi-objective mixed integer programming model for multi echelon supply … Системні дослідження та інформаційні технології, 2010, № 4 53 holding and ordering costs in DCs using economic order quantity model (Eq. 2). Equation 3 (third objective) minimizes equity of the capacity utilization ratio of manufacturers and DCs. Constraint (Eq. 4) represents the unique assignment of a DC to a customer, (Eq. 5) is the capacity constraint for DCs, (Eq. 6) and (Eq. 7) gives the satisfac- tion of customer and DCs demands for the product, (Eq. 8) gives the supplier ca- pacity constraint, (Eq. 9) describes the raw material supply restriction, (Eq. 10) is the manufacturer production capacity constraint. Finally, constraints (Eq. 11) and (Eq. 12) are integrality constraints. 3. NUMERICAL EXAMPLE In this section we present a numerical example to illustrate the proposed model mentioned in previous section. The application of the model is performed for a logical data which was inspired from related cases in the real world. The consid- ered supply chain network includes five suppliers which are located different places, three manufacturers, three distribution centers and four customers (Fig. 2). The network is structured to supply raw materials and transport products from suppliers to end-users is constituted from multi echelon and capacitated elements of network considering minimizing the total transportation costs between all eche- lons (suppliers, manufacturers, distribution centers (DCs) and customers, holding and ordering costs in DCs and unnecessary and unused capacity of plants and DCs via decreasing variance of transported amounts between echelons. Numerical data used in example are given below, respectively. Table 1 and 2 gives the pri- orities of objectives obtained by Expert Choice 11.5 program to find rate of pur- poses according to AHP methodology. T a b l e 1 . Relatives of Objective Functions (AHP) 1f 2f 3f 1f 1 2 3 2f 1/2 1 3/2 3f 1/3 2/3 1 Sum 1.83 3.67 5.5 T a b l e 2 . Normalized AHP Matrix 1f 2f 3f 1f 0.545 0.545 0.545 2f 0.273 0.273 0.273 3f 0.182 0.182 0.182 According to Table 2, weight of each objective function is 0.542, 0.273 and 0.182 respectively. Because of matrix consistency < 0.1, this matrix will be ac- cepted. Parameters: Number of Total Suppliers: 5; Number of Total Customers: 4; Number of Total Manufacturers: 3; Number of Total Distribution Centers: 3; S 20 tl; hC 1,5 tl. T. Paksoy, E. Özceylan, G.-W. Weber ISSN 1681–6048 System Research & Information Technologies, 2010, № 4 54 T a b l e 3 . Unit transportation costs values between suppliers and manufactur- ers (TL) Suppliers Manufacturers 1 2 3 4 5 1 0.5 0.3 0.4 0.4 0.5 2 0.6 0.4 0.5 0.6 0.6 3 0.5 0.5 0.6 0.6 0.4 T a b l e 4 . Unit transportation costs values between manufacturers and DCs (TL) Manufacturers DCs 1 2 3 1 1.4 1.1 1.1 2 1.1 1.2 0.8 3 1.3 1.4 0.9 T a b l e 5 . Unit transportation costs values between DCs and Customers (TL) DCs Customers 1 2 3 1 0.9 0.9 0.7 2 0.7 0.6 0.6 3 0.8 0.5 0.7 4 0.6 0.9 0.8 T a b l e 6 . Capacities of Suppliers, Manufacturers, DCs and Demands of Cus- tomers (unit) Suppliers Manufacturers DCs Customers 1 5000 7000 6300 3100 2 5500 6500 6700 3100 3 5250 6500 6000 3100 4 4750 – – 3100 5 4500 – – – T a b l e 7 . The results obtained by LINGO package program Decision Value Decision Value X1,3 2000 Y3,2 3400 X2,1 2400 Y3,3 3100 X2,2 3100 Z1,4 3100 X3,1 400 Z2,2 3100 X5,3 4500 Z2,3 3100 Y1,2 2800 Z3,1 3100 Y2,1 3100 Objective (tl) 13678 According to data obtained LINGO package program, results are given above table 7. Under capacity constraint and transportation costs, decision maker A multi-objective mixed integer programming model for multi echelon supply … Системні дослідження та інформаційні технології, 2010, № 4 55 purchased raw materials from all suppliers except fourth. 2000 units from first suppliers, 5500 units from second supplier, 400 units from third and 4500 units from fifth supplier, are transported to manufacturers. 2800 units which come from second and third supplier are shipped to second DC from first manufacturer. Also 3100 units of product are transported from second manufacturer to first DC. 3400 units to second DC and 3100 units to third DC totally 4460 units of product shipped from third manufacturer. Supporting equation 4 constraint, each customer provided their demand only one DC via providing a better balanced distribution. All customers’ demand is supplied from DCs as 3100, 6200 and 3100 units re- spectively (Fig. 3). At three echelons, all transportation costs and hold- ing/ordering costs in DCs (first and second objective functions) calculated about 13678tl. Providing the third objective, the unnecessary and unused capacity of plants and DCs are minimized via decreasing variance of transported amounts between second and third echelons. When we examined the second and third echelons’ distribution, it’s seen that the transportation between manufacturers- DCs-customers come and go from 2800 units to 3400 units considering balancing distribution. 4. CONCLUSION In this study, a mixed integer non-linear programming model is developed to de- sign a supply chain network by combining three different objectives. Considered three objectives: (1) minimization of total transportation cost of plants and distri- bution centers (DCs), inbound and outbound distribution costs, (2) minimization of holding and ordering costs via EOQ method (3) maximization of capacity utili- zation balance for DCs (i.e. equity on utilization ratios). We used the developed model to determine from which suppliers, manufacturers, DCs and how much amounts will be transported to answer customers demand. We developed binary variables to provide a DC for a customer. So we have prevented unbalanced dis- tributions between DCs and customers. Fig. 3. Raw Material and Product flow 1 2 3 4 5 1 2 3 4 1 2 3 1 2 3 2400 3100 2800 3100 3100 3100 3100 3100 2000 4500 400 3400 3100 Customers Suppliers Manufacturers Distibution Centers T. Paksoy, E. Özceylan, G.-W. Weber ISSN 1681–6048 System Research & Information Technologies, 2010, № 4 56 In future, new solution methodology based on tabu search or heuristic meth- ods can be developed to obtain new optimal solutions for the multi-objective SCN design problem, and the effectiveness of the solution methodology can be investi- gated. Additionally, uncertainty of costs and demands can be considered in the model and new solution methodologies including uncertainty can be developed via fuzzy models. REFERENCES 1. Ahumada O., Villalobos J.R. Application of planning models in the agri-food supply chain: a review // European Journal of Operational Research. — 2009. — 196 (1). — P. 1–20. 2. Altiparmak F., Gen M., Lin L., Paksoy T. A genetic algorithm approach for multi- objective optimization of supply chain Networks // Computers and Industrial En- gineering. — 2006. — 51. — P. 197–216. 3. Chen L., Lee W. Multi objective optimization of multi echelon supply chain net- works with uncertain product demands and prices // Computers and Chemical Engineering. — 2004. — 28. — P. 1131–1144. 4. Cohen M.A., Lee H.L. Resource deployment analysis of global manufacturing and distribution networks // Journal of Manufacturing and Operations Management. — 1989. — 2. — P. 81–104. 5. Gen M., Syarif A. Hybrid genetic algorithm for multi-time period production distri- bution planning // Computers and Industrial Engineering. — 2005. — 48. — P. 799–809. 6. Gong Q., Lai K.K., Wang S. Supply chain networks: Closed Jackson network models and properties // International Journal of Production Economics. — 2008. — 113. — P. 567–574. 7. Gumus A.T., Guneri A.F., Keles S. Supply chain network design using an integrated neuro-fuzzy and MILP approach: A comparative design study, Expert Systems with Applications, doi:10.1016/j.eswa.2009.05.034. — 2009. 8. Gunasekaran A., Ngai E. Modeling and analysis of build-to-order supply chains // European Journal of Operational Research. — 2009. — 195 (2). — P. 319–334. 9. Lin L., Gen M., Wang X. A hybrid genetic algorithm for logistics network design with flexible multistage model // International Journal of Information Systems for Logistics and Management. — 2007. — 3 (1). — P. 1–12. 10. Nagurney A., Toyasaki F. Reverse supply chain management and electronic waste recycling: a multitired network equilibrium framework for e-cycling // Transpor- tation Research. Part E. — 2005. — P. 1–28. 11. Narasimhan R., Mahapatra S. Decision models in global supply chain management // Industrial Marketing Management. — 2004. — 33. — P. 21–27. 12. Ozdamar L., Yazgaç T. Capacity driven due date settings in make-to-order produc- tion systems // International Journal of Production Economics. — 1997. — 49 (1). — P. 29–44. 13. Paksoy T. Distribution network design and optimization in supply chain manage- ment: under material requirements constraints a strategic production-distribution model // Journal of Selcuk University Social Sciences Institute. — 2005. — 14. — P. 435–454, in Turkish. 14. Petrovic D., Roy R., Petrovic R. Supply chain modeling using fuzzy sets // Interna- tional Journal of Production Economics. — 1999. — 59. — P. 443–453. 15. Pyke D.F., Cohen M.A. Performance characteristics of stochastic integrated produc- tion distribution systems // European Journal of Operational Research. — 1993. — 68 (1). — P. 23–48. A multi-objective mixed integer programming model for multi echelon supply … Системні дослідження та інформаційні технології, 2010, № 4 57 16. Schütz P., Tomasgard A., Ahmed S. Supply chain design under uncertainty using sample average approximation and dual decomposition // European Journal of Operational Research, doi:10.1016/j.ejor.2008.11.040. — 2008. 17. Shin H., Benton W.C., Jun M. Quantifying suppliers’ product quality and delivery performance: A sourcing policy decision model // Computers & Operations Re- search 2009. — 36. — P. 2462–2471. 18. Sourirajan K., Ozsen L., Uzsoy R. A genetic algorithm for a single product network design model with lead time and safety stock considerations // European Journal of Operational Research. — 2009. — 197 (2). — P. 599–608. 19. Syarif A., Yun Y., Gen M. Study on multi-stage logistics chain network: a spanning tree-based genetic algorithm approach // Computers and Industrial Engineering. — 2002. — 43 (1). — P. 299–314. 20. Tuzkaya U., Önüt S. A holonic approach based integration methodology for transpor- tation and warehousing functions of the supply network // Computers and Indus- trial Engineering. — 2009. — 56. — P. 708–723. 21. Wang H.S. A two-phase ant colony algorithm for multi echelon defective supply chain network design, European Journal of Operation Research, doi: 10.1016/j.ejor.2007.08.037. — 2007. 22. Williams J.F. Heuristic techniques for simultaneous scheduling of production and distribution in multi-echelon structures: theory and empirical comparisons // Management Science. — 1981. — 27 (3). — P. 336–352. 23. Xu N., Nozick L. Modeling supplier selection and the use of option contracts for global supply chain design // Computers & Operations Research. — 2009. — 36. — P. 2786–2800. 24. Yan H., Yu Z., Cheng T.C.E. A strategic model for supply chain design with logical constraints: formulation and solution // Computers & Operations Research. — 2003. — 30 (14). — P. 2135–2155. 25. Yılmaz P. Strategic level three-stage production distribution planning with capacity expansion, Unpublished Master Thesis // Sabancı University Graduate School of Engineering and Natural Sciences. — 2004. — P. 1–20, in Turkish. 26. You F., Grossmann E. Design of responsive supply chain under demand uncertainty // Computers & Chemical Engineering. — 2008. — 32 (12). — P. 3090–3111. Received 27.10.2009 From the Editorial Board: the article corresponds completely to submitted manu- script.
id nasplib_isofts_kiev_ua-123456789-50068
institution Digital Library of Periodicals of National Academy of Sciences of Ukraine
issn 1681–6048
language English
last_indexed 2025-12-07T16:16:03Z
publishDate 2010
publisher Навчально-науковий комплекс "Інститут прикладного системного аналізу" НТУУ "КПІ" МОН та НАН України
record_format dspace
spelling Paksoy, T.
Özceylan, E.
Weber, G.-W.
2013-10-04T14:52:58Z
2013-10-04T14:52:58Z
2010
A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization / T. Paksoy, E. Özceylan, G.-W. Weber // Систем. дослідж. та інформ. технології. — 2010. — №4. — С. 47-57. — Бібліогр.: 26 назв. — англ.
1681–6048
https://nasplib.isofts.kiev.ua/handle/123456789/50068
519.854.2
This paper applies a mixed integer linear programming to designing a multi echelon supply chain network (SCN) via optimizing commodity transportation and distribution of a SCN. Proposed model attempts to aim multi objectives of SCN by considering total transportation costs and capacities of all echelons. The model composed of three different objective functions. The first one is minimizing the total transportation costs between all echelons. Second one is minimizing of holding and ordering costs in distribution centers (DCs) and the last objective function is minimizing the unnecessary and unused capacity of plants and DCs.
Застосовується змішане лінійне цілочислове програмування до побудови багатоешелонної мережі поставок (SCN) за допомогою оптимізації перевезень і розподілу в SCN. Запропонована модель дозволяє враховувати багато задач SCN за допомогою розгляду загальних витрат на транспортування і місткості всіх ешелонів. У модель включено три різні цільові функції: перша — мінімізує повні вартості перевезень між усіма ешелонами; друга — мінімізує витрати від збереження і вартості замовлення в центрах розподілу (DCs), а остання цільова функція мінімізує зайву і невикористану потужність заводів і DCs.
Применяется смешанное линейное целочисленное программирование к построению многоэшелонной сети поставок (SCN) посредством оптимизации перевозок и распределения в SCN. Предложенная модель позволяет учесть многие задачи SCN посредством рассмотрения общих затрат на транспортировку и емкостей всех эшелонов. В модель включены три различные целевые функции: первая — минимизирует полные стоимости перевозок между всеми эшелонами; вторая — минимизирует затраты от сохранения и стоимости заказа в центрах распределения (DCs), а последняя целевая функция минимизирует излишнюю и неиспользованную способность заводов и DCs.
en
Навчально-науковий комплекс "Інститут прикладного системного аналізу" НТУУ "КПІ" МОН та НАН України
Системні дослідження та інформаційні технології
Прогресивні інформаційні технології, високопродуктивні комп’ютерні системи
A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
Багатоцільова модель змішаного цілочислового програмування для побудови і оптимізації багатоешелонної мережі поставок
Многоцелевая модель смешанного целочисленного программирования для построения и оптимизации многоэшелонной сети постановок
Article
published earlier
spellingShingle A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
Paksoy, T.
Özceylan, E.
Weber, G.-W.
Прогресивні інформаційні технології, високопродуктивні комп’ютерні системи
title A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
title_alt Багатоцільова модель змішаного цілочислового програмування для побудови і оптимізації багатоешелонної мережі поставок
Многоцелевая модель смешанного целочисленного программирования для построения и оптимизации многоэшелонной сети постановок
title_full A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
title_fullStr A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
title_full_unstemmed A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
title_short A multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
title_sort multi-objective mixed integer programming model for multi echelon supply chain network design and optimization
topic Прогресивні інформаційні технології, високопродуктивні комп’ютерні системи
topic_facet Прогресивні інформаційні технології, високопродуктивні комп’ютерні системи
url https://nasplib.isofts.kiev.ua/handle/123456789/50068
work_keys_str_mv AT paksoyt amultiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization
AT ozceylane amultiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization
AT webergw amultiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization
AT paksoyt bagatocílʹovamodelʹzmíšanogocíločislovogoprogramuvannâdlâpobudoviíoptimízacííbagatoešelonnoímerežípostavok
AT ozceylane bagatocílʹovamodelʹzmíšanogocíločislovogoprogramuvannâdlâpobudoviíoptimízacííbagatoešelonnoímerežípostavok
AT webergw bagatocílʹovamodelʹzmíšanogocíločislovogoprogramuvannâdlâpobudoviíoptimízacííbagatoešelonnoímerežípostavok
AT paksoyt mnogocelevaâmodelʹsmešannogoceločislennogoprogrammirovaniâdlâpostroeniâioptimizaciimnogoéšelonnoisetipostanovok
AT ozceylane mnogocelevaâmodelʹsmešannogoceločislennogoprogrammirovaniâdlâpostroeniâioptimizaciimnogoéšelonnoisetipostanovok
AT webergw mnogocelevaâmodelʹsmešannogoceločislennogoprogrammirovaniâdlâpostroeniâioptimizaciimnogoéšelonnoisetipostanovok
AT paksoyt multiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization
AT ozceylane multiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization
AT webergw multiobjectivemixedintegerprogrammingmodelformultiechelonsupplychainnetworkdesignandoptimization