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Supply chain optimization in context of production flow network

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Abstract

For large multinational companies, the complex production process of their finished goods usually contains plenty of stages, which constitute a production flow network. Each production stage in the production flow network can be undertaken by one or more suppliers. This study proposes a stochastic programming model for the production flow network oriented supply chain network design problem, which optimizes the decision of allocating stages to suppliers with the objective of minimizing the total expected costs of production and transportation among suppliers under uncertain demands of customers. A local branching based solution method is developed to solve the model. A case study on applying this model to a large automobile company is performed. In addition, some numerical experiments are conducted to validate the effectiveness of the proposed model and the efficiency of the proposed solution method.

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Author information

Authors and Affiliations

  1. School of Management, Shanghai University, Shanghai, 200444, China

    Lu Zhen, Dan Zhuge & Jingqi Lei

Authors
  1. Lu Zhen
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  2. Dan Zhuge
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  3. Jingqi Lei
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Corresponding author

Correspondence to Lu Zhen.

Additional information

Lu Zhen is a professor in School of Management, Shanghai University, Shanghai, China. He obtained both the B.E. and the Ph.D. degrees from Shanghai Jiao Tong University. His research interests focus on logistics and supply chain management. He has published over thirty papers on international journals such as Transportation Science, European Journal of Operational Research.

Dan Zhuge is a graduate student in School of Management, Shanghai University, Shanghai, China. Her major is management science and engineering, and her research interest focuses on logistics and supply chain management.

Jingqi Lei is a graduate student in School of Management, Shanghai University, Shanghai, China. Her major is logistic engineering, and her research interest focuses on logistics and supply chain management.

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Zhen, L., Zhuge, D. & Lei, J. Supply chain optimization in context of production flow network. J. Syst. Sci. Syst. Eng. 25, 351–369 (2016). https://doi.org/10.1007/s11518-016-5304-6

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  • DOI: https://doi.org/10.1007/s11518-016-5304-6

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