Supply chain optimization in context of production flow network

Lu Zhen, Dan Zhuge, Jingqi Lei

Research output: Journal article publicationJournal articleAcademic researchpeer-review

5 Citations (Scopus)

Abstract

For large multinational companies, the complex production process of their finished goods usually contains plenty of stages, which constitute a production flow network. Each production stage in the production flow network can be undertaken by one or more suppliers. This study proposes a stochastic programming model for the production flow network oriented supply chain network design problem, which optimizes the decision of allocating stages to suppliers with the objective of minimizing the total expected costs of production and transportation among suppliers under uncertain demands of customers. A local branching based solution method is developed to solve the model. A case study on applying this model to a large automobile company is performed. In addition, some numerical experiments are conducted to validate the effectiveness of the proposed model and the efficiency of the proposed solution method.

Original languageEnglish
Pages (from-to)351-369
Number of pages19
JournalJournal of Systems Science and Systems Engineering
Volume25
Issue number3
DOIs
Publication statusPublished - 1 Sep 2016

Keywords

  • allocation
  • production
  • stochastic programming
  • Supply chain network

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Information Systems

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