インダストリアルエンジニアリングとマネジメント

Optimization Solution to Supply Chain Network Architecture Using New-PSO Algorithm

Abstract

Rajeshwar S Kadadevaramath

In today’s global competition in manufacturing and distribution, the success of an industry is dependent on cost effective supply chain management under various markets, logistics and production uncertainties. Uncertainties in the supply chain usually decrease profit, i.e. increase total supply chain cost. Optimization is no longer a luxury but has become the order of the day. This paper specifically deals with tactical level model which considers an integrated, multi component, single product, multi stage / multi-echelon and procurement-production-distribution system design problem in a flexible supply chain network configuration. The four stages considered in this research work are vendors, manufacturing plants, warehouses and distribution centers in order of their contributions to the chain. In this work Non-Linear Inertia Weight Particle Swarm Optimization (NLIW-PSO) algorithm has been implemented to optimize of four-echelon supply chain architecture. The Total Supply Chain operating Cost (TSCC) of the supply chain network are considered as a performance indicator.