Distribution Network Design With Uncertain Demand: A Case Study Of TH True Milk

Abstract

Now a day, supply chain network design requires minimize total cost and minimize CO2 emission also. TH’ true milk is the new modern factory so that they have difficulty with new supply chain network design. They also have to balance between cost and CO2 emission. So that, we have proposed and solved the problem of selection location to build DCs to supply product the retailer. The goal of our research is minimizing the total cost and minimize CO2 emission of the retail supply chain, which includes CO2 emission fixed cost, investment cost, holding cost and transportation cost. We also provide multi - objective model for this problem. This model can be solved by using CPLEX and the running time is about two minutes. In the end, we compare our solution and current situation, our solution is better than the current situation about 31% and help TH company save about 1.5 billion VND. In future, we may expand our model for extra product and complete supply chain of TH true milk.