Intergrated Network Design Of Wheat Supply Chain: A Real Case Of BA Company

Abstract

The report presents the problem of cost optimization from the perspective of a Vietnamese wheat-product manufacturer - BA. BA company is now facing with various problems which lead to considerable diminishing in the profit. In this thesis, taking the wheat product of BA company as a case study, the raw material – wheat flour is now facing with problems of fluctuated demand, storing method and ineffectively network supply planning. The objective of this thesis is to minimize the total cost by doing research on time of placing order, building silo, distribution center and market demand. In the thesis's context, the Mixed Integer Programming is used to solve the cost optimization problem for BA company. CPLEX software is applied. The model and testing data bases on the company case. The implementation details and the result of numerical experiment are presented and discussed. After the study, it is realized that building Silo and distribution center should take into consideration for the cost optimization of the proposed improvements in the thesis and conduct to implement it. However, due to lacking of limitation of time, some aspects are not coverd and need to be considered in the further study. Keywords: Cost optimization, MIP, Production Planning, Supply chain network design.