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A strategic capacity allocation model for a complex supply chain: formulation and solution approach comparison

Li, H and Hendry, L and Teunter, R H (2009) A strategic capacity allocation model for a complex supply chain: formulation and solution approach comparison. International Journal of Production Economics, 121 (2). pp. 505-518. ISSN 0925-5273

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    Abstract

    In this paper, a capacity allocation problem is discussed based on a more complex supply chain than has been typically considered in previous quantitative modelling studies. This study analyses an integrated supply chain operation from raw material purchasing to final product distribution. The aim is to optimize the allocation of capacities among different facilities and product items. In this paper, a mixed integer programming model with dynamic characteristics is presented first, and then alternative solution procedures are introduced. The solution procedures include the development of a decomposition heuristic and an integrated heuristic algorithm. A computation study compares the solution procedures and uses sensitivity analysis to show that the heuristics work well. Thus, by adequately modelling a more realistic sized supply chain problem, this study represents an important advance in supply chain modelling research.

    Item Type: Article
    Journal or Publication Title: International Journal of Production Economics
    Subjects:
    Departments: Lancaster University Management School > Management Science
    ID Code: 44769
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 19:21
    Refereed?: Yes
    Published?: Published
    Last Modified: 09 Apr 2014 22:26
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/44769

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