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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.

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
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    References listed on IDEAS

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    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.
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