Modeling and Solving an Integrated Supply Chain System

Authors

  • Minnie H Patel San Jose State University
  • Wenbin Wei San Jose State University
  • Yasser Dessouky San Jose State University
  • Zengbin Hao San Jose State University
  • Ronnaporn Pasakdee San Jose State University

DOI:

https://doi.org/10.23055/ijietap.2009.16.1.200

Keywords:

Integrated Supply Chain, Logistics, Mixed Integer Programming, and Heuristics

Abstract

We develop and optimize an integrated supply chain model that combines strategic decision (where to locate distribution centers) with the tactical decisions (production levels and inventory levels) and operational decisions (satisfying customer demand on time and coordinating logistics network). In previous studies, the integrated models for supply chain have been applied mostly in two areas: the first is the integration of production and inventory; and the second is the integration of production and distribution. We build a mixed-integer programming model to minimize the total costs of distribution, storage, inventory and operations, with production levels high enough to satisfy customer demand. Two heuristic solution methods are presented: horizontal staging and time slicing. The results show that the horizontal staging heuristic can provide solutions very close to the best solution of the optimal model and with significant savings in run time.

Author Biographies

Minnie H Patel, San Jose State University

M

Wenbin Wei, San Jose State University

Dr. Wenbin Wei is a professor in college of engineering and a research associate in Mineta Transportation Institute of college of business at San Jose State University. He is also the director of the Human Automation Integration Lab (HAIL) at San Jose State University. Dr. Wei has a Ph.D. from University of California at Berkeley, majoring in transportation engineering and management. He has a master of science from Carnegie Mellon University, majoring in computer aided engineering and management, and also a master of engineering and a bachelor of science from Southeast University in China. Before joining the faculty at San Jose State University, Dr. Wei worked as a research analyst at American Airlines, and a Post-doc in National Center of Excellence for Aviation Operations Research (NEXTOR) and in California Partners for Advanced Transit and Highway (PATH) at University of California at Berkeley. He also worked as a transportation engineer in Transportation Research Institute of Jiangsu Province in China.

Yasser Dessouky, San Jose State University

Yasser Dessouky is a Professor in the Department of Industrial and Systems Engineering. Dr Dessouky has extensive research and consulting experience in developing models to analyze improvements in design of systems and has published extensively in this area. He has co-chaired several international conferences and serves on the editorial board on several prestigious international journals. He earned his Ph.D. and M.S. degrees in Industrial and Management Systems Engineering at Arizona State University and a BS in Industrial Engineering at University of Wisconsin - Madison.

Zengbin Hao, San Jose State University

Zengbin Hao has graduated from the Department of Industrial & Systems Engineering at San Jose State University and is currently working as a manufacturing Engineer at AsteelFlash, US Region.

Ronnaporn Pasakdee, San Jose State University

Ronnaporn Pasakdee has graduated from the Department of Industrial & Systems Engineering at San Jose State University and is currently working as an Industrial Engineer in Thailand.

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Published

2022-03-14

How to Cite

Patel, M. H., Wei, W., Dessouky, Y., Hao, Z., & Pasakdee, R. (2022). Modeling and Solving an Integrated Supply Chain System. International Journal of Industrial Engineering: Theory, Applications and Practice, 16(1), 13–22. https://doi.org/10.23055/ijietap.2009.16.1.200

Issue

Vol. 16 No. 1 (2009)

Section

Supply Chain Management

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