A New Bi-Objective Mathematical Model for Optimization of Supply Chain Planning Issue

Aggregate production-distribution planning (APDP) is one of the most critical and strategic process in supply chains. Considering the prevalence of supplier selection and inventory control problems in supply chain management, this paper addresses the economic optimization of supply chain planning. A systematic and integrative viewpoint toward supply chain planning issue is proposed and an economic mixed integer linear programming (MILP) model is presented. In order to model this problem, a multi-echelon supply chain which contains various levels such as manufacturers, distribution centers and retailers in multi-period is taken into consideration. Then, branch and bound algorithm is applied to find a global optimum for this model. Finally, a numerical example is conducted in order to verify the efficacy and efficiency of the proposed model and solution. It has been shown that such an approach can significantly help the managers to decide properly toward economic supply chain planning issue