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Four-level Supply Chain Network Design and Optimization Study

Author: GuoXiaoJuan
Tutor: LiJingFeng
School: Shanxi University
Course: Industrial Engineering
Keywords: Four-level supply chain network Design and optimization Xiyang coal company
CLC: F274
Type: Master's thesis
Year: 2013
Downloads: 140
Quote: 0
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Abstract


In the development process of globalization of market, science and technology continue to progress, enterprises competition is increasingly fierce, customer demand is increasingly diverse and product life cycle is becoming shorter and shorter,so enterprise’s service and quality requirements must also higher and higher. In such a tough market environment, the supply chain network has undergone enormous changes. Today’s supply chain network structure changes the past single and parallel structure, and turned into a complex and staggered structure. At this point, manufacturing enterprises is in the supply chain which has multi-vendor, multi-manufacturing plant, multiple distribution centers and more customers. In the case of limited resources, companies must re-examine their supply chain network, design and optimize their supply chain network to find optimal network structure, so as to improve the overall efficiency and performance of network and bring greater benefits for the enterprise.With the good momentum of development of the modern economic environment, the operational efficiency of enterprises improves continuously, and the supply chain nodes are also more complicated than the past. In this case, the supply chain nodes often include suppliers, manufacturers, distribution centers and customers, so the supply chain studied in this essay includes these four nodes instead of the traditional three-level supply chain. Because the three-level supply chain study will inevitably reduce a node,which is not comprehensive for the research and the reality.While the study based on four-level supply chain can reflect the operational process more typically and actually,and it’s also more practical and more representative. This study is based on,and it conducts selection and flow configuration for the alternative nodes. In this paper,we establish a model for the core enterprise in the the four-level supply chain to make the following decisions:choose the best nodes from the alternative suppliers, manufacturers (core enterprise) and distribution centers, at the same time decide the distributing traffic between the suppliers, manufacturer,distribution centers and customers, to save costs and improve profitability for enterprises.At first, this paper describes the significance of supply chain network design and optimization, indicating the necessity of the study,and then lists the research status. From the research situation,we find that the optimization method of supply chain is mainly by establishing and solving the model, so as to achieve the goal of optimizing the supply chain. Secondly the paper analyzes the related theory of supply chain network design, including the definition,features, objectives, steps and considerations of supply chain network design. During the period,the paper is based on manufacturing companies and builds the supply chain network structure with the manufacture enterprise as the center of the network. Again, supply chain network design and optimization model is established through the use of operations research knowledge. The objective of the model is to make the total revenue of the core enterprise maximum, which is consistent with the economic goals. In the model,the costs include fixed operating costs, order costs, production costs, job processing costs, transportation costs and shortage costs. Subsequently, this paper take a coal company in Xiyang Shanxi as an example, and carry on the further innovation on the basis of the above model combined with the actual situation. The innovation is resolving the ratio of a variety of raw coal and all kinds of commodity coal. Then the model is solved by Lingo software, obtaining Xiyang coal company’s effective supply chain network structure. Thus the example verifies the feasibility and applicability of the model. Finally, the paper gives a conclusion, reiterates what problems can be solved by the article and points out the article’s innovation and shortcomings.

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