Author/Authors :
mehmood, s. university of engineering and technology, Taxila, Pakistan , sultan, a. university of engineering and technology, Taxila, Pakistan , anwar, w. institute of space technology, Islamabad, Pakistan , butt, z. university of engineering and technology, Taxila, Pakistan , javed, k. university of engineering and technology, Taxila, Pakistan , rehman, r.a. university of engineering and technology, Taxila, Pakistan
Abstract :
A cost effective supply chain (SC) involves selection of proper suppliers for each component, low manufacturing cost and selling its final product at good cost. Inventory level of raw material and of the manufactured product depends on manufacturing cycle time (MCT) and order processing time (OPT). In this research work, a global SC of an SME is modelled using synergy of two modelling techniques: 1) Mixed Integer program (MIP): for the selection of proper suppliers and customers based on the rates offered and lead time, and 2) System Dynamics (SD): to decide the production start rate, production rate, work in process (WIP) inventory, and total inventory of the finished product so that the processing cost of the product attains its optimum value. This research work will be obliging to eradicate abnormalities in the SCs comprised of various interacting variables by complex feedback loops.
