Integrated modeling framework for supply chain design considering multiproduct production facilities

Abstract

Significant benefits can be obtained if the interactions among different decision levels are appropriately addressed and simultaneously solved. In this work, a MILP formulation for the supply chain design is presented which simultaneously takes into account considerations of multiproduct batch production facilities. Usually SC design models used to assume a constant performance and design of the involved plants. Our proposal allows assessment of the trade-offs between decisions of different management levels: from the strategic perspective (nodes selection, supplier selection, material flows among nodes, etc.) until the operative one (production scheduling using campaigns). From several examples, this approach shows that decisions about supply chain and plants are tightly related among them and a general performance cannot be assumed for the production facilities