Supply Chain Logistic Design And Planning Problem: A Case Study Of Viet Tien Company

Abstract

Supply chain network design is very important to all company in the world. Due to the time and the technology, some company need to re-design their supply chain network to optimize their cost and Viettien is one of those companies. We have proposed and solved the problem of redesign supply chain of Viettien company. The goal of our research is minimizing the total cost of the whole supply chain, which includes upgraded cost for showrooms, transportation cost and holding cost at central warehouse and Thien Quang distributor. We also provide MIP model for this problem. This model can be solved by using CPLEX and the running time is about two minutes. In the end, we propose new supply chain for Viettien and we compare our solution and current situation, our solution is better than the current situation about 0.1% and help Viettien save about 14 billion VND. In future, we may expand our model for extra product and complete supply chain of Viettien