Optimiztion For Manufacturing And Inventory: A Case Study Of Con Cung

Abstract

Con Cung is one of the largest retailer supply chain shops for mom and baby in Vietnam. They have been growing amazingly fast in the last few years and they are facing a problem in supply chain network design by assigning supplier to warehouse, retailer to warehouse and controlling the inventory level. In our research, we have proposed and solved their facing challenges. The goal of our research is minimizing the total cost of the retailer supply chain, which includes set-up cost, transportation cost and inventory cost. We also provide a mathematical model for this problem. This model can be solved by using CPLEX and the running time is about two and a half hours. Finally, we compare and analyse our solution with the current situation to show the company that we will make their supply chain network more efficient than their one. In future, we may expand our model for extra products and complete the supply chain for Con Cung. From that, the company could optimize the cost of warehouse, order, and inventory.