Supply Chain Network Design: A Case Study Saigon Tobacco Company

Abstract

Saigon Tobacco One-Member Limited Liability Company (VINATABA SAIGON) is a state-owned enterprise under the ownership of Vietnam National Tobacco Corporation. They are facing with the problem in supply chain network design by decentralize distribution network, transportation cost high, lead-time long. In our research, we have proposed and solving their facing challenges. The goals of our research are minimizing the total cost of the distributor supply chain, which include fixed cost, transportation cost and minimizing lead-time. We also provide MILP model for this problem. This model can be solved by using CPLEX and the running time is about 2 minute. At the end, we compare and analyses our solution versus current situation to show the company that we will make their supply chain network is more efficient than their one. In future, we may expand our model for extra products and complete supply chain for VINATABA Saigon. From that, the company could optimize the cost of transportation, order and capacity.