A facility location and operation problem of a two-level supply chain with variable capacity levels for production-time-dependent products  

Oleh:

Han, Jun-Hee ; Kim, Yeong-Dae ; Yang, Ji-Won

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-11.
Topik: supply chain; facility location; production planning; heuristic; capacity level
Fulltext: 1253.pdf (377.08KB)

Isi artikel

We consider a two-level supply chain which consists of a manufacturing plant and multiple suppliers with variable capacity levels. Each supplier produces semi-finished products needed for several types of (finished) products and delivers the semi-finished products to the manufacturing plant, which produces the products to satisfy dynamic demand. In each supplier, production times of semi-finished products for different product types may be different, but production should be started at the same time if they are in the same process batch although they may be completed at different times. In this problem, it is assumed that suppliers can determine the capacity levels among candidate capacity levels when they start the production of semi-finished products and that the capacity levels of suppliers can be changed during the planning horizon. The fixed costs for starting production at the suppliers are determined by capacity levels at each period. The problem considered here is to determine whether to operate suppliers and their capacity levels in each period of the planning horizon with the objective of minimizing the sum of the fixed costs associated with the capacity levels, production costs, and transportation costs of the supply chain network during the planning horizon. We present a mixed integer programming model, and develop a heuristic algorithm. Performance of the algorithm is evaluated by a series of tests on a number of instances, and results are reported.

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