A Mathematical Programming for Supply Chain Network Design

Supply chain network design is a classical problem in operations research area since it was invented during the Second World War. A large-scale supply chain network design problem, which is originated from industrial need in restructuring a company´s supply chain network, is introduced. The supply chain network includes multiple-warehouses, and large number of customers. Designing supply chain network is a semi-permanent decision that cannot be changed easily once the decision has been made. Furthermore, it also requires investment that should be retrieved in reasonable period by improved supply chain operations based on the design decision. Due to importance of the design decision, a mathematical model for the problem is developed for considering various aspects of the problem, operation cost and customer service level besides the investment cost. The optimization model is solved for real-world business decision making to decide locations, and sizes of multiple-warehouses