Integrated supply chain design using multi criteria mixed integer programming.
Date of Award
Industrial and Manufacturing Systems Engineering
El Maraghy, H. A.
CC BY-NC-ND 4.0
This research focuses on following key Supply Chain Design questions: determining supplier selection, production quantities, inventory locations and sizes, transportation option selection and transportation quantity in a multi stage, multi level supply chain. A Novel Integrated Supply Chain Design Framework that integrates Production Costs, Transportation Costs, First Time Quality and Supplier On-Time Delivery criteria has been proposed and implemented. Mixed Integer Linear Programming models were developed and four classes of problems were solved. Real world automotive industry data was used for testing and verifying these models. Key new knowledge, both data dependent and data independent, was gained in the course of this research. Data dependent insights include: (1) Recommendation for splitting the customer demand between two suppliers even in the absence of capacity constraints, and (2) Unit Production Cost, Unit Transportation Cost and FTQ were shown to be the most critical factors in the Total Global Supply Chain Costs. Data independent insights indicated that: (1) Supplier selection decisions at every stage and level should be made using a global integrated approach of considering both production and transportation costs across the complete supply chain avoiding the myopic approach of always looking for the cheapest part from the lowest bidding supplier, (2) Out-sourcing to a non-domestic, less expensive supplier is not always the best decision for every product when selecting suppliers, (3) The Total Global Supply Chain Costs, Production Costs and Transportation Costs all increase non-linearly with worsening FTQ of the Supply Chain links, and (4) Supplier FTQ has the most severe impact on the supply chain stage farthest from the Demand Consumption Stage with the impact severity being higher at lower FTQ rates. This research has clearly demonstrated the merits and benefits of taking an integrated decision making approach when selecting suppliers. A multi-criteria model that combines the cost of production, transportation, first-time quality and supplier on-time delivery has been proposed and tested. Significant savings can be achieved as a result of using the framework developed in this research. The savings in the total supply chain cost, in the automotive example used for illustration, were in excess of 15% which translates into several Million dollars over a period of 3 Years.Dept. of Industrial and Manufacturing Systems Engineering. Paper copy at Leddy Library: Theses & Major Papers - Basement, West Bldg. / Call Number: Thesis2004 .M353. Source: Dissertation Abstracts International, Volume: 66-02, Section: B, page: 1110. Adviser: Hoda A. Elmaraghy. Thesis (Ph.D.)--University of Windsor (Canada), 2004.
Majety, Ramesh., "Integrated supply chain design using multi criteria mixed integer programming." (2004). Electronic Theses and Dissertations. 2462.