Proposing a Mathematical Programming Model for Optimization of Supply Chain Scheduling

Supply chain scheduling is an integrated approach to the production planning and inventory control of systems. The purpose of this paper is to formulate the generalized supply chain scheduling issue in which the objective is to minimize sum of the costs incurred within all of the echelons of supply chain. A mixed integer non-linear programming (MINLP) model is proposed for this problem. Variety of constraints such as production capacity in regular and overtimes, inventory holding capacities, and distribution capacity with regard to different modes of transportation, are considered in order to simulate a real situation better. Inventory shortages and lead-times for transporting components and final products among various echelons are also incorporated into the proposed model. Finally, a numerical example in a small-sized problem is presented to show the applicability and performance of proposed model