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Tactical and strategic redesign of supply chains affected by delocalisation

Author

Listed:
  • Rafael Guillermo García-Cáceres
  • Sergio Alvarez-Velasco
  • John Wilmer Escobar Velásquez

Abstract

The present research work addresses the problem of modelling and redesigning a supply chain. With that general purpose, a model is developed to minimise logistics costs, including specific considerations about provisioning, inventories, products, location, selection of supply channels, assignments between distribution centres and demand zones, and transfers between distribution centres. The solution procedure is based on the design of a linear-programming-like MIP model for large optimisation scales. The model is validated with real data from a multinational beauty product company. Simulated data are used for larger instances. The performance of the solution procedure of the model enables optimal solutions to be obtained in practical instances of the problem at excellent CPU times.

Suggested Citation

  • Rafael Guillermo García-Cáceres & Sergio Alvarez-Velasco & John Wilmer Escobar Velásquez, 2023. "Tactical and strategic redesign of supply chains affected by delocalisation," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 44(4), pages 553-575.
    • Handle: RePEc:ids:ijlsma:v:44:y:2023:i:4:p:553-575
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