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Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction

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  • Nagurney, Anna

Abstract

In this paper, we propose a framework for supply chain network design and redesign that allows for the determination of the optimal levels of capacity and operational product flows associated with supply chain activities of manufacturing, storage, and distribution at minimal total cost and subject to the satisfaction of product demands. We formulate both the design and redesign problems as variational inequalities and show that the same algorithm, which exploits the underlying network structure, can be used for the solution of either problem. We illustrate the new framework with numerical examples that demonstrate the practicality and flexibility of the approach.

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  • Nagurney, Anna, 2010. "Optimal supply chain network design and redesign at minimal total cost and with demand satisfaction," International Journal of Production Economics, Elsevier, vol. 128(1), pages 200-208, November.
    • Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:200-208
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    Cited by:

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    2. Fattahi, Mohammad & Mahootchi, Masoud & Govindan, Kannan & Moattar Husseini, Seyed Mohammad, 2015. "Dynamic supply chain network design with capacity planning and multi-period pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 169-202.
    3. Juan Jos¨¦ Uchuya Lop¨¦z & Raad Yahya Qassim, 2017. "An Optimal Redesign Approach for Optimal Global Supply Chain Redesign: Brazilian Soybean Grain Study," Business and Management Horizons, Macrothink Institute, vol. 5(2), pages 84-111, December.
    4. Elimam, A.A. & Dodin, B., 2013. "Project scheduling in optimizing integrated supply chain operations," European Journal of Operational Research, Elsevier, vol. 224(3), pages 530-541.
    5. Wang, Gang & Gunasekaran, Angappa & Ngai, Eric W.T. & Papadopoulos, Thanos, 2016. "Big data analytics in logistics and supply chain management: Certain investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 176(C), pages 98-110.
    6. De Rosa, Vincenzo & Gebhard, Marina & Hartmann, Evi & Wollenweber, Jens, 2013. "Robust sustainable bi-directional logistics network design under uncertainty," International Journal of Production Economics, Elsevier, vol. 145(1), pages 184-198.
    7. Talley, Wayne K. & Ng, ManWo, 2013. "Maritime transport chain choice by carriers, ports and shippers," International Journal of Production Economics, Elsevier, vol. 142(2), pages 311-316.
    8. Talley, Wayne K. & Ng, ManWo, 2017. "Hinterland transport chains: Determinant effects on chain choice," International Journal of Production Economics, Elsevier, vol. 185(C), pages 175-179.
    9. 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.
    10. Nagurney, Anna & Nagurney, Ladimer S., 2012. "Medical nuclear supply chain design: A tractable network model and computational approach," International Journal of Production Economics, Elsevier, vol. 140(2), pages 865-874.
    11. Polo, Andrés & Peña, Numar & Muñoz, Dairo & Cañón, Adrián & Escobar, John Willmer, 2019. "Robust design of a closed-loop supply chain under uncertainty conditions integrating financial criteria," Omega, Elsevier, vol. 88(C), pages 110-132.
    12. Nagurney, Anna & Yu, Min, 2012. "Sustainable fashion supply chain management under oligopolistic competition and brand differentiation," International Journal of Production Economics, Elsevier, vol. 135(2), pages 532-540.
    13. Xiaoge Zhang & Andrew Adamatzky & Felix T. S. Chan & Sankaran Mahadevan & Yong Deng, 2017. "Physarum solver: a bio-inspired method for sustainable supply chain network design problem," Annals of Operations Research, Springer, vol. 254(1), pages 533-552, July.
    14. Kieran P. Donaghy, 2012. "The Co-evolution of Logistics, Globalization and Spatial Price Competition: Implications for a Unified Theory of Trade and Location," Chapters, in: Roberta Capello & Tomaz Ponce Dentinho (ed.), Globalization Trends and Regional Development, chapter 3, Edward Elgar Publishing.
    15. Li, Yuhong & Zobel, Christopher W., 2020. "Exploring supply chain network resilience in the presence of the ripple effect," International Journal of Production Economics, Elsevier, vol. 228(C).
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    17. Li, Xiangyong & Aneja, Y.P. & Huo, Jiazhen, 2012. "Using branch-and-price approach to solve the directed network design problem with relays," Omega, Elsevier, vol. 40(5), pages 672-679.
    18. Mariagrazia Dotoli & Nicola Epicoco & Marco Falagario, 2017. "A fuzzy technique for supply chain network design with quantity discounts," International Journal of Production Research, Taylor & Francis Journals, vol. 55(7), pages 1862-1884, April.
    19. Éva E Plagányi & Ingrid van Putten & Olivier Thébaud & Alistair J Hobday & James Innes & Lilly Lim-Camacho & Ana Norman-López & Rodrigo H Bustamante & Anna Farmery & Aysha Fleming & Stewart Frusher & , 2014. "A Quantitative Metric to Identify Critical Elements within Seafood Supply Networks," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-15, March.
    20. Liu, Zugang & Cruz, Jose M., 2012. "Supply chain networks with corporate financial risks and trade credits under economic uncertainty," International Journal of Production Economics, Elsevier, vol. 137(1), pages 55-67.

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