A supply chain network design optimization model of transportation system for Thuan Phat Co.,LTD

Abstract

This paper presented the supply chain network design optimization model using Linear Programming method and IBM CPLEX for solving. To achieve the desired objective – maximize profit, a Linear Programming model was developed with different operational constraints and parameters recorded from the case company. 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. 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 customers (suppliers) 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: Supply chain network design, Transportation, Network Optimization, Linear Programming, CPLEX