Optimization of a Multi-product Three-echelon Supply Chain

Najafi, Mehrnaz; Ghodratnama, Ali; Pasandideh, Hamid Reza

doi:10.22034/2017.3.04

Optimization of a Multi-product Three-echelon Supply Chain

Document Type : Research Paper

Authors

Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran

10.22034/2017.3.04

Abstract

This paper aims at single-objective optimization of multi-product for three-echelon supply chain architecture consisting of production plants, distribution centers (DCs) and customer zones (CZs). The key design decisions considered are: the quantity of products to be shipped from plants to DCs, from DCs to CZs , cycle length, and production quantity so as to minimize the total cost .To optimize the objective, three-echelon network model is mathematically represented considering the associated constraints, production, capacityand shipment costs and solved using genetic algorithm (GA) and Simulated Annealing (SA).Some numerical illustrations are provided at the end to not only show the applicability of the proposed methodology, butalso to select the best method using a t-test along with the simple additive weighting (SAW) method.

Keywords

Main Subjects

operations planning,scheduling & control

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