Day Thursday, October 16, 2008 Room Alberta
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01h35 PM- 02h10 PM |
Optimizing the Design of a Supply Chain Network with Economies of Scale using Mixed Integer Programming |
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Adil M. Salam,
Concordia University, Department of Mechanical and
Industrial Engineering, Montreal, Quebec, Canada;
a_salam@encs.concordia.ca Fantahum M. Defersha, Concordia University, Department of Mechanical and Industrial Engineering, Montreal, Quebec, Canada; md_fanta@encs.concordia.ca Dia Bandaly, Concordia University, John Molson School of Business, Montreal, Quebec, Canada; d_ban@jmsb.concordia.ca In this paper we formulate and analyze the design of a supply chain network where the concept of economies of scale in transportations in considered. Having the demand of different products from various retailers, the model determines the numbers and locations of the consolidation and distribution centers. It also determines the routes and lot sizes of the shipments to fulfill the demand by the retailers. Piecewise linearization technique is utilized to transform the non linear concave cost function of the transportation into a linear form. Using this linearization technique, a mixed integer liner programming (MLIP) model is developed that can be efficiently solved using a branch and bound based optimization package. Numerical examples are presented to demonstrate the features of the proposed model and the impacts certain input parameters have on the design of the supply chain network. |
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02h15 PM- 02h50 PM |
TBA |