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Multiobjective optimisation of production, distribution and capacity planning of global supply chains in the process industry

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  • Liu, Songsong
  • Papageorgiou, Lazaros G.

Abstract

The performance of a supply chain should usually be measured by multiple criteria. We address production, distribution and capacity planning of global supply chains considering cost, responsiveness and customer service level simultaneously. A multiobjective mixed-integer linear programming (MILP) approach is developed with total cost, total flow time and total lost sales as key objectives. Also, two strategies to expand the formulation plants’ capacities are considered in the model. The ε-constraint method and lexicographic minimax method are used as solution approaches to tackle the multiobjective problem. Finally, a numerical example is investigated to demonstrate the applicability of the proposed model and solution approaches.

Suggested Citation

  • Liu, Songsong & Papageorgiou, Lazaros G., 2013. "Multiobjective optimisation of production, distribution and capacity planning of global supply chains in the process industry," Omega, Elsevier, vol. 41(2), pages 369-382.
  • Handle: RePEc:eee:jomega:v:41:y:2013:i:2:p:369-382
    DOI: 10.1016/j.omega.2012.03.007
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    7. Longinidis, Pantelis & Georgiadis, Michael C., 2014. "Integration of sale and leaseback in the optimal design of supply chain networks," Omega, Elsevier, vol. 47(C), pages 73-89.
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    11. Häntsch, Marius & Huchzermeier, Arnd, 2016. "Transparency of risk for global and complex network decisions in the automotive industry," International Journal of Production Economics, Elsevier, vol. 175(C), pages 81-95.
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    15. Ramos, Tânia Rodrigues Pereira & Gomes, Maria Isabel & Barbosa-Póvoa, Ana Paula, 2014. "Planning a sustainable reverse logistics system: Balancing costs with environmental and social concerns," Omega, Elsevier, vol. 48(C), pages 60-74.
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    17. Sawik, Tadeusz, 2016. "Integrated supply, production and distribution scheduling under disruption risks," Omega, Elsevier, vol. 62(C), pages 131-144.
    18. Jiuping Xu & Guomin Fang & Zezhong Wu, 2016. "Network equilibrium of production, transportation and pricing for multi-product multi-market," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 84(3), pages 567-595, December.
    19. Zhen, Lu, 2014. "A three-stage optimization model for production and outsourcing under China’s export-oriented tax policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 1-20.
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    22. Huang, Edward & Goetschalckx, Marc, 2014. "Strategic robust supply chain design based on the Pareto-optimal tradeoff between efficiency and risk," European Journal of Operational Research, Elsevier, vol. 237(2), pages 508-518.

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