The Optimization of Costs of Supply Chain Network

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Abstract:

This research proposes a muti-echelon supply chain network design model. The model includes raw material suppliers, manufacturers, distribution centers, and customer zones. The purpose of this research is to minimize the total costs of supply chain network. The total costs include transportation cost, fixed cost, variable cost, penalty cost. This model is a mixed integer linear programming model. In general, it is very difficult to solve the model. In order to solve the model, Cplex12.6 is used. The results show that this model can be solved by this mathematical programming software well.

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801-805

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March 2015

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© 2015 Trans Tech Publications Ltd. All Rights Reserved

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