Development of a mathematical programming model to redesign the supply chain network with the possibility of changing the usage of facilities

Document Type : Original Article

Authors

1 Master's degree, Department of Master of Business Administration (MBA), Faculty of Financial Sciences, Management and Entrepreneurship, University of Kashan, Kashan, Iran.

2 Associate Professor, Department of Industrial Engineering, Faculty of Engineering, University of Kashan, Kashan, Iran.

Abstract

Introduction and objectives: Today, due to the competitive environment of the market, cooperation in the form of supply chain networks is necessary for the survival of businesses, and for efficient and effective cooperation between members, there is a need for coherent management of the supply chain. To realize this, there is a need for continuous coordination between supply chain performance on the one hand and market expectations on the other hand. One of the methods of maintaining this coordination is the continuous redesign of the supply chain network over time. In the supply chain network redesign problem, the goal is to improve an existing supply chain, while in the supply chain network design problem, a new supply chain is created from scratch. in real conditions; Often, the problem of redesigning the supply chain is more widely used than the problem of designing the supply chain, while in the literature, the vast majority of researches are focused on designing a supply chain from scratch. One of the decisions of the redesign problem that has been hidden from the attention of researchers is the decision to change the use of supply chain facilities. in other words; Changing the facility layer in the supply chain is considered as a new decision.
Methods: The decision to change the use of facilities in the traditional supply chain problem is challenging, because it changes not only the network flows but also the network structure (topology). Changing the basic structure of the supply chain network is a non-linear problem. In this research, an innovative innovation has been used to face this challenge, by first changing the perspective of the supply chain network from a traditional layered network to a rotating network and then presenting Innovative mathematical modeling based on the innovative perspective of the rotating supply chain network.
Findings: Redesigning the supply chain network with the possibility of changing the usage of facilities due to changes in the network structure is a non-linear problem. In this research, by changing the perspective and creating innovative variables and constraints, a linear mixed integer multi-period programming model has been presented for the problem. Also, in this model, the transition mode of changing the usage of facilities from one layer to another layer is considered, and achieving this capability is one of the amazing results of using the innovative perspective of the rotating network of the supply chain. This model was solved using an example in GAMS software with the CPLEX method, and MATLAB software has been used to show the results of this model and an innovative view of the supply chain.
Conclusion: In the past, supply chain managers faced with the decision to change the usage of facilities in the supply chain network due to the limitations of the traditional layer view for mathematical modeling and optimal redesign of the network under their management. They have faced a challenge, which now the managers have the possibility to face it with the help of this innovative model and changing the perspective towards the supply chain network. As a management proposal, we can point out the need to use the principles of optimization and supply chain management as a new management approach and paradigm. At the strategic level of the supply chain, due to its wide nature and dimensions, the amount of costs is high and small improvements in it will lead to a significant competitive advantage increase for the supply chain under management. for this reason; Chain managers are advised to use the model presented in this article for chains in which it is possible to change the use of facilities, to improve the chain under their management.

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References

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