Designing a two-layer supply chain with capital budgeting consideration

This paper proposes a mathematical model to design a supply chain network which maximizes the present value of benefits. Benefits are the difference between the incomes of product sales and production, storage, opening a plant and transportation costs. This model contains both strategic and tactical decisions.A linear programming model in dynamic environment is designed which considers economical parameters such asloans, initial capital to maximize present value of benefits.

Keywords:

supply chain network , capital budgeting , production planning , location and allocation