A Three-echelon Multi-objective Multi-period Multi-product Supply Chain Network Design Problem: A Goal Programming Approach

In this paper, a multi-objective multi-period multi-product supply chain network design problem is introduced. This problem is modeled using a multi-objective mixed integer mathematical programming. The objectives are: maximizing the total profit of logistics, maximizing service level, and minimizing inconsistency of operations. Several sets of constraints are considered to handle the real situations of threeechelon supply chains. As the optimum value of conflicting objective functions of the proposed model cannot be met concurrently, a goal programming approach is used for that matter. An illustrative numerical example is provided to show the mechanism of the proposed model and the solution procedure. In a numerical example, 1 manufacture, 2 warehouses, 2 distribution centers (DCs), and 2 types of final products are considered in a planning horizon consisting of 3 time periods. Products are shipped from the manufacturer to warehouses, and then are shipped from the two warehouses to two distribution centers. The distribution centers are the points from which products are shipped to final consumers. The Model is coded using GAMS software on a Core i7 CPU, using 8GB of RAM with MS-Windows 8.0. The optimum design of supply chain, inventory level for warehouses and distributors, and amount of shipments between echelons are determined.

Keywords:

Supply chain network design , Goal programming , Back order , Multi-Period Planning