3006. A systematic approach for selecting the optimal inventory control policy and supply chain network design
Invited abstract in session MA-48: Location and Logistics, stream Locational Analysis.
Monday, 8:30-10:00Room: Parkinson B09
Authors (first author is the speaker)
| 1. | Juan Peralta
|
| Department of Industrial Engineering, Universidad Católica del Norte | |
| 2. | Francisco J. Tapia-Ubeda
|
| Department of Industrial Engineering, Universidad Católica del Norte | |
| 3. | Pablo A. Miranda
|
| Department of Industrial Engineering, Universidad Catolica del Norte | |
| 4. | Elias Olivares-Benitez
|
| Faculty of Engineering, Universidad Panamericana | |
| 5. | Armin Lüer-Villagra
|
| Department of Engineering Sciences, Universidad Andres Bello |
Abstract
Supply chain management is a crucial aspect to ensure the organization’s competitiveness. One of the main challenges in this field is supply chain network design, which refers to the planning of the physical infrastructure of the supply chain. Traditionally, decision-making for supply chain network design has been carried out in isolation and hierarchically. This traditional approach has been proven to be profoundly mechanistic and fails to address the synergy between the aspects considered. This research proposes a new approach based on holistic decision-making and how this can help to find optimal global solutions. Thus, a few decades ago, inventory location models were introduced, typically integrating tactical and strategic decisions. However, these models assume a priori a fixed and known inventory control policy. In this context, this research proposes a novel inventory location model that allows selecting the best inventory control policy while ensuring cost efficiency. Since it is a mixed-integer, non-linear, non-convex model, a Generalized Benders Decomposition-based approach is also presented. The implementation of the proposed solution approach has resulted in finding the optimal solution for the synthetic instances tested. The proposed scheme systematically ensures the best configuration for the network.
Keywords
- Supply Chain Management
- Network Design
- Location
Status: accepted
Back to the list of papers