Title: A new mathematical model for a distribution network problem in a multi-product supply chain system: a real-case study

Authors: M. Rabbani, R. Tavakkoli-Moghaddam, H. Parsa

Addresses: Department of Industrial Engineering, Faculty of Engineering, University of Tehran, PO Box 11356/4563, Tehran, Iran. ' Department of Industrial Engineering, Faculty of Engineering, University of Tehran, PO Box 11356/4563, Tehran, Iran. ' Department of Industrial Engineering, Faculty of Engineering, University of Tehran, PO Box 11356/4563, Tehran, Iran

Abstract: This paper presents a distribution network design problem in a multi-product supply chain system that involves locating production plants and distribution warehouses as well as determining the best strategy for distributing the product from plants to warehouses and from the warehouses to customers. The goal is to select the optimum numbers, locations and capacities of plants and warehouses to open, so that all customer demands of all product types are satisfied at minimum total costs of the distribution network. Unlike most of the previous researches, our study considers a multi-product supply chain system. We develop a mixed-integer mathematical programming model for designing a supply chain distribution network. Finally, this paper presents a real-case study to investigate designing a pharmaceutical supply chain distribution network. A possible extension is also offered in the conclusion.

Keywords: distribution networks; mathematical modelling; supply chain management; SCM; multi-product supply chains; production plants; distribution warehouses; location; distribution strategy; pharmaceutical supply chains.

DOI: 10.1504/IJMTM.2008.018236

International Journal of Manufacturing Technology and Management, 2008 Vol.15 No.1, pp.1 - 11

Published online: 13 May 2008 *

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