A supply chain network design optimization model of a retail distribution supply chain for Vinh Nghiep Co., LTD

Abstract

Retail distribution supply chain plays an increasingly important function in delivering value to the consumer, optimizing the manufacturing cost and allocation order in purchasing. Therefore, organizations need to adopt a holistic view of the entire network. These needs have propelled the modeling of supply chain network design and this study investigates that from the Retail Supply Chain’s perspective. In this paper, we create and consider a model formulation of the Supply Chain Network Design (SCND) optimization after carrying out a thorough systematic review of literature. The proposed model can be used for strategic decisions such as determining the correct number of facilities to minimize the total supply chain network costs and selecting the best supplier-retail combination for a retail supply chain network. The objective is to come up with the mathematical model to minimize the total supply chain network design cost considering in a multi-echelon network where, multi suppliers, multi warehouses, multi Distribution Centres (DCs), multi retailer, and multi products are taken into consideration. The proposed model considers transportation cost among the facilities when considering the multi-echelon network and is validated through some cases from the data Keywords: Multi-echelon Network Optimization Retail distribution Supply chain network design