IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v128y2010i1p200-208.html

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(10)00261-6
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    2. Drezner, Zvi & Wesolowsky, George O., 2003. "Network design: selection and design of links and facility location," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(3), pages 241-256, March.
    3. T. L. Magnanti & R. T. Wong, 1984. "Network Design and Transportation Planning: Models and Algorithms," Transportation Science, INFORMS, vol. 18(1), pages 1-55, February.
    4. Hau L. Lee & Corey Billington & Brent Carter, 1993. "Hewlett-Packard Gains Control of Inventory and Service through Design for Localization," Interfaces, INFORMS, vol. 23(4), pages 1-11, August.
    5. Stella C. Dafermos, 1971. "An Extended Traffic Assignment Model with Applications to Two-Way Traffic," Transportation Science, INFORMS, vol. 5(4), pages 366-389, November.
    6. Nagurney, Anna & Dong, June & Zhang, Ding, 2002. "A supply chain network equilibrium model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 281-303, September.
    7. Meixell, Mary J. & Gargeya, Vidyaranya B., 2005. "Global supply chain design: A literature review and critique," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 531-550, November.
    8. Melkote, Sanjay & Daskin, Mark S., 2001. "An integrated model of facility location and transportation network design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(6), pages 515-538, July.
    9. Anna Nagurney, 2006. "Supply Chain Network Economics," Books, Edward Elgar Publishing, number 4242, June.
    10. Zhang, Ding, 2006. "A network economic model for supply chain versus supply chain competition," Omega, Elsevier, vol. 34(3), pages 283-295, June.
    11. Nagurney, Anna, 2009. "A system-optimization perspective for supply chain network integration: The horizontal merger case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 1-15, January.
    12. Anna Nagurney & Trisha Woolley, 2010. "Environmental and Cost Synergy in Supply Chain Network Integration in Mergers and Acquisitions," Lecture Notes in Economics and Mathematical Systems, in: Matthias Ehrgott & Boris Naujoks & Theodor J. Stewart & Jyrki Wallenius (ed.), Multiple Criteria Decision Making for Sustainable Energy and Transportation Systems, pages 57-78, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Huang, Yongxi & Chen, Yihsu, 2014. "Analysis of an imperfectly competitive cellulosic biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 1-14.
    2. 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.
    3. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
    4. Bigotte, João F. & Krass, Dmitry & Antunes, António P. & Berman, Oded, 2010. "Integrated modeling of urban hierarchy and transportation network planning," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(7), pages 506-522, August.
    5. Contreras, Ivan & Fernández, Elena, 2012. "General network design: A unified view of combined location and network design problems," European Journal of Operational Research, Elsevier, vol. 219(3), pages 680-697.
    6. Hadas, Yuval & Laor, Amir, 2013. "Network design model with evacuation constraints," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 1-9.
    7. Peng, Peng & Snyder, Lawrence V. & Lim, Andrew & Liu, Zuli, 2011. "Reliable logistics networks design with facility disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1190-1211, September.
    8. Nagurney, Anna & Nagurney, Ladimer S., 2012. "Dynamics and equilibria of ecological predator–prey networks as nature’s supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 89-99.
    9. Cocking, Cara & Flessa, Steffen & Reinelt, Gerhard, 2012. "Improving access to health facilities in Nouna district, Burkina Faso," Socio-Economic Planning Sciences, Elsevier, vol. 46(2), pages 164-172.
    10. Li, Xiaopeng & Medal, Hugh & Qu, Xiaobo, 2019. "Connected infrastructure location design under additive service utilities," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 99-124.
    11. Zugang Liu & Anna Nagurney, 2009. "An integrated electric power supply chain and fuel market network framework: Theoretical modeling with empirical analysis for New England," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(7), pages 600-624, October.
    12. Nagurney, Anna & Saberi, Sara & Shukla, Shivani & Floden, Jonas, 2015. "Supply chain network competition in price and quality with multiple manufacturers and freight service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 248-267.
    13. repec:tkp:ijsrsy:v:2:y:2012:i:2:p:73-91 is not listed on IDEAS
    14. Yang, Yuxiang & Goodarzi, Shadi & Jabbarzadeh, Armin & Fahimnia, Behnam, 2022. "In-house production and outsourcing under different emissions reduction regulations: An equilibrium decision model for global supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    15. Palsule-Desai, Omkar D., 2015. "Cooperatives for fruits and vegetables in emerging countries: Rationalization and impact of decentralization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 114-140.
    16. Nagurney, Anna, 2021. "Supply chain game theory network modeling under labor constraints: Applications to the Covid-19 pandemic," European Journal of Operational Research, Elsevier, vol. 293(3), pages 880-891.
    17. Abdolsalam Ghaderi, 2015. "Heuristic Algorithms for Solving an Integrated Dynamic Center Facility Location - Network Design Model," Networks and Spatial Economics, Springer, vol. 15(1), pages 43-69, March.
    18. Elnaz Miandoabchi & Reza Farahani & W. Szeto, 2012. "Bi-objective bimodal urban road network design using hybrid metaheuristics," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(4), pages 583-621, December.
    19. Farahani, Reza Zanjirani & Miandoabchi, Elnaz & Szeto, W.Y. & Rashidi, Hannaneh, 2013. "A review of urban transportation network design problems," European Journal of Operational Research, Elsevier, vol. 229(2), pages 281-302.
    20. Contreras, Ivan & Fernández, Elena & Reinelt, Gerhard, 2012. "Minimizing the maximum travel time in a combined model of facility location and network design," Omega, Elsevier, vol. 40(6), pages 847-860.
    21. Blanco, Víctor & Puerto, Justo & Ramos, Ana B., 2011. "Expanding the Spanish high-speed railway network," Omega, Elsevier, vol. 39(2), pages 138-150, April.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:200-208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.