Supplier Selection And Supply Chain Network Design: A Case Study Of Longdan Company

Abstract

Longdan is one of the companies with a unique operating models, Longdan specializes in selling traditional Vietnamese products, food and cosmetics to the UK. During its operation, the company has had many difficulties in planning the supply chain. Therefore, we have successfully developed a method to help Longdan company plan a complete supply chain including procurement plans, road or air transportation plans, warehouse and store storage plans to ensure there is no shortage/loss of stock. The constraints of the problem are surveyed and developed in accordance with the purpose and strategy of Longdan company. As a result, we have developed a master plan for the company's supply chain, which helps the company reduce $2.3 billion per year and does not need to build new warehouses. However, to ensure the practicality, we also conduct a sensitivity analysis in case of demand being increased, we come to the conclusion that the company should build an additional warehouse with an additional cost of about 1%. Finally, we analyze the model influence on the environment, social and economic to demonstrate the comprehensive effectiveness of the model.