Mathematical Modeling of Two-Echelon with Multiple Manufacturers and Transportation in the Supply Chain

Abstract

In today's world of global markets industry, Companies cannot survive without considering competitors' moves and progress because they are part of a supply chain and the success or failure of any member of the chain affect the other members. In this paper, the two echelon supply chain with multiple products and a producer as well as a distributor and several customer cases has been investigated. In the first part of the chain, just one type of vehicle was applied and the second parts of the chain two types of vehicle were used. The proposed model for this study is an integrated mathematical model of mixed integer programming. This is considered to minimize overall costs which incluses shipping cost, maintenance cost, inventory cost and the penality cost for lack of inventory. This case study concentrates on the sent rolls (produced by Mobarakeh Steel Company) to Structure Gostar Saipa Co. (S.G.S) and then after to automotive parts manufacturer. The "Imperialist Competitive Algorithm solved in 20 different sizes was applied, and its results (in small size) were compared with the software GAMS results.

Keywords

• supply chain
• mathematical model
• logistics costs
• imperialist competitive algorithm
• transportation