Designing a Mathematical Optimizing Model of the Integrated Supply Chain Network at Strategic and Tactical Levels

Abstract

Objective: In today's competitive economy, the supply of a product in an optimal quantity, quality and minimum cost at the right time are the pillars of success in a business. A continually efficient supply chain also plays an important role in solidifying this success. This research aims to model an integrated supply chain network to achieve maximum profit while minimizing the overall response time.Methods: In view of the importance of supply chain management and logistics in recent times, the design and optimization of the supply chain network are extremely critical. This is mostly because, at each decision level, a well-optimized decision will result in a competitive advantage in the market. In this research, the said design and optimization is explained in two levels; a strategic level where a supply chain is designed, and a tactical level dedicated to operational planning of the supply chain. In this paper, a mathematical model has been formulated for these levels. To verify and validate the proposed model, the acquired data from a computer case manufacturing company are examined and the outcomes were highlighted.Results: This paper provides a tool in order to optimize the supply chain network. This tool can be useful for any manager or for those who are planning a supply chain from production or designing a product distribution network. Managers can also use this model to ensure the performance parameters of a particular supply chain.Conclusion: The results show that the proposed model can provide an effective and easy-to-follow method to achieve a well-established plan in an integrated supply chain

Keywords

• optimization
• strategic supply chain
• tactical supply chain