Azam Boskabadi - Master student, University of Tehran, College of Engineering, Department of Industrial Engineering
Reza Tavakkoli-Moghaddam - Professor, University of Tehran, College of Engineering, Department of Industrial Engineering

This study presents an extension to a mathematical model for a distribution network design problem in a multi-product supply chain network that contains locating production plants and distribution centers as well as determining the best strategy for distributing the product from plants to warehouses and from the warehouses to customers. Furthermore, the model determines the capacities level of the facilities (i.e., plants or distribution centers (DCs)) and the design of the network (i.e., selecting the optimum numbers and locations of plants and distribution centers to be opened, so that all customer demands of all product types are satisfied) with the minimum total cost and a constraint in the total budget for opening and operating plants or DCs. In this study, we develop a mixed-integer non-linear programming (MINLP) model for designing a supply chain distribution network and present an extended real-case study and solve it by GAMS.

Distribution centers, Location, Mixed-integer non-linear programming, Supply chain system