An improved response time-constrained optimization model and solving algorithm for supply chain network design considering transport mode impacts

Author(s): Hu Hui

Supply chain network design has a great and long impact on both the structure and value of the supply chain network. More and more firms are willing to optimally design their supply chain network so as to reduce their operation cost and improve their competence. In this paper, a referenced mixed integer non-linear programing optimization model considering market response time is solved using CPlex software instead of Lingo11 software and it seems that an optimal solution can be got readily. Based on this model, an improved mixed integer nonlinear programming (MINLP) model considering transport mode impacts which will affect response time is developed. The model’s objective is to maximize the total profit and decision variables include transportation amounts between facilities, transport mode selection etc. Hereafter, a hybrid intelligent optimization method which takes full advantage of CPlex software and genetic algorithm is designed to solve the model. Finally, an illustrative supply chain network model is solved using the hybrid algorithm put forward. The results demonstrate the model’s effectiveness and the algorithm’s feasibility compared to the original model and other algorithms.

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