Abstract
This chapter addresses the design of supply chain networks including both network configuration and related operational decisions such as order splitting, transportation allocation and inventory control. The goal is to achieve the best compromise between cost and customer service level. An optimisation methodology that combines a multi-objective genetic algorithm (MOGA) and simulation is proposed to optimise not only the structure of the network but also its operation strategies and related control parameters. A flexible simulation framework is developed to enable the automatic simulation of the supply chain network with all possible configurations and all possible control strategies. To illustrate its effectiveness, the proposed methodology is applied to two real-life case studies from automotive industry and textile industries.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2003). Designing and managing the supply chain: Concepts, strategies and case studies. New York: McGraw-Hill.
National Research Council, Visionary manufacturing challenges for 2020 (1998). Committee on visionary manufacturing challenges, board on manufacturing and engineering design, commission on engineering and technical systems. Washington, DC: National Academy Press.
Schmidt, G., & Wilhelm, E. (2000). Strategic, tactical and operational decisions in multi-national logistics networks: A review and discussion of modeling issues. International Journal of Production Research, 39(7), 1501–1523.
Goetschalckx, M., Vidal, C. J., & Dogan, K. (2002). Modeling and design of global logistic systems: A review of integrated strategic and tactical models and design algorithms. European Journal of Operational Research, 143, 1–18.
Meixell, M. J., & Gargeya, V. B. (2005). Global supply chain design: A literature review and critique. Transportation Research Part E, 41, 531–550.
Klose, A., & Drexel, A. (2005). Facility location models for distribution system design. European Journal of Operational Research, 162, 4–29.
ReVelle, C. S., & Eiselt, H. A. (2005). Location analysis: A synthesis and survey. European Journal of Operational Research, 165, 1–19.
Jain, V., Wadhwa, S., & Deshmukh, S. G. (2006). Modeling and analysis of supply chain dynamics: a high intelligent time petri net based approach. International Journal of Industrial and Systems Engineering, 1(1/2), 59–86.
Zarandi, M. H. F., Turksen, I. B., & Saghiri, S. (2002). Supply chain: Crisp and fuzzy aspects. International Journal of Applied Mathematics and Computer Science, 12(3), 423–435.
Swaminathan, M. J., Smith, S. F., & Sadeh, N. M. (1998). Modeling supply chain dynamics: A multiagent approach. Decision Sciences, 29(3), 607–632.
Melo, M. T., Nickel, S., & Saldanha da Gama, F. (2006). Dynamic multi-commodity capacitated facility location: A mathematical modeling framework for strategic supply chain planning. Computers and Operations Research, 33, 181–208.
Geoffrion, A. M., & Graves, G. W. (1974). Multi-commodity distribution system design by Bender’s decomposition. Management Science, 20, 822–844.
Cohen, M. A., & Lee, H. L. (1985). Manufacturing strategy: concepts and methods. In P. R. Kleindorfer (Ed.), The Management of Productivity and Technology in Manufacturing (pp. 153–188). New York: Plenum.
Cohen, M. A., & Lee, H. L. (1989). Resource deployment analysis of global manufacturing and distribution networks. Journal of Manufacturing and Operations Management, 2, 81–104.
Arntzen, B. C., Brown, G. G., Harrison, T. P., & Trafton, L. L. (1995). Global supply chain management at digital equipment corporation. Interfaces, 25, 69–93.
Pirkul, H., & Jayaraman, V. (1996). Production, transportation, and distribution planning in a multi-commodity tri-echelon system. Transportation Sciences, 30(4), 291–302.
Pirkul, H., & Jayaraman, V. (1998). A multi-commodity, multi-plant, capacitated facility location problem: formulation and efficient heuristic solution. Computers and Operations Research, 25(10), 869–878.
Pirkul, H., & Jayaraman, V. (2001). Planning and coordination of production and distribution facilities for multiple commodities. European Journal of Operational Research, 133, 394–408.
Vila, D., Martel, A., & Beauregard, R. (2006). Designing logistics networks in divergent process industries: A methodology and its application to the lumber industry. International Journal of Production Economics, 102(2), 358–378.
Martel, A. (2006). The design of production-distribution networks: A mathematical programming approach. In J. Geunes & P. M. Pardalos (Eds.), Supply chain optimization 98 (pp. 265–305). Springer series: applied optimization. Berlin: Springer
Snyder, L. V. (2006). Facility location under uncertainty: A review. IIE Transactions, 38(7), 547–564.
Louveaux, F. V. (1986). Discrete stochastic location models. Annals of Operations Research, 6, 23–34.
Ricciardi, N., Tadei, R., & Grosso, A. (2002). Optimal facility location with random throughput costs. Computers and Operations Research, 29, 593–607.
Erlebacher, S. J., & Meller, R. D. (2000). The interaction of location and inventory in designing distribution systems. IIE Transactions, 32, 155–166.
Daskin, M. S., Coullard, C. R., & Shen, Z.-J. M. (2002). An inventory-location model: formulation, solution algorithm and computational results. Annals of Operations Research, 110, 83–106.
Shen, Z.-J. M., Coullard, C. R., & Daskin, M. S. (2003). A joint location-inventory model. Transportation Science, 37(1), 40–55.
Snyder, L. V. (2004). Supply chain robustness and reliability: Models and algorithms. Ph.D. Dissertation, Department of Industrial Engineering and Management Sciences, Northwestern University, Evanston, IL, USA.
Shen, Z.-J. M. (2005). A multi-commodity supply chain design problem. IIE Transactions, 37, 753–762.
Tanonkou, G. A., Benyoucef, L., & Xie, X. (2006), Integrated facility location and supplier selection decisions in a distribution network design. Proceedings of the 2nd IEEE International Conference on Service Operations and Logistics, and Informatics (pp. 399–404). June 21–23, Shanghai (China).
Tanonkou, G. A., Benyoucef, L., & Xie, X. (2007). Design of multi-commodity distribution network with random demands and supply lead-times. Proceedings of the 3rd IEEE International Conference on Automation Science and Engineering (pp. 698–703). September 22–25, Scottsdale, AZ, USA.
Tanonkou, G. A., Benyoucef, L., & Xie, X. (2008). Design of stochastic distribution networks using Lagrangian relaxation. IEEE Transactions on Automation Science and Engineering (TASE), 5(4), 597–608.
França, P. M., & Luna, H. P. L. (1982). Solving stochastic transportation-location problems by generalized Benders decomposition. Transportation Science, 16(2), 113–126.
Moinzadeh, K., & Nahmias, S. (1988). A continuous review model for an inventory system with two supply modes. Management Science, 34, 761–773.
Sculli, D., & Shum, Y. W. (1990). Analysis of a continuous review stock-control model with multiple suppliers. Journal of Operational Research Society, 41, 873–877.
Ramasesh, R. V., Ord, J. K., Hayya, J. C., & Pan, A. (1991). Sole versus dual sourcing in stochastic lead-time (s, Q) inventory models. Management Science, 37, 428–443.
Lau, H. S., & Zhao, L. G. (1994). Dual sourcing cost-optimization with unrestricted lead-time distributions and order-split proportions. IIE Transactions, 26, 66–75.
Ganeshan, R., Boone, T., & Stenger, A. J. (2001). The impact of inventory and flow planning parameters on supply chain performance: An exploratory study. International Journal of Production Economics, 71, 111–118.
Sedarage, D., Fujiwara, O., & Luong, H. T. (1999). Determining optimal order splitting and reorder level for N-supplier inventory systems. European Journal of Operational Research, 116, 389–404.
Ghodyspour, S. H., & O’Brien, C. (2001). The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint. International Journal of Production Economics, 73, 15–27.
Qi, X. (2007). Order splitting with multiple capacitated suppliers. European Journal of Operational Research, 178, 421–432.
Wang, G., Jiang, Z., Li, Z., & Liu, W. (2008). Supplier selection and order splitting in multiple-sourcing inventory systems. Frontiers of Mechanical Engineering in China, 3(1), 23–27.
Ding, H., Benyoucef, L., & Xie, X. (2008). Simulation-based evolutionary multi-objective optimization approach for integrated decision-making in supplier selection. International Journal of Computer Applications in Technology, 31(3/4), 144–157.
Slats, P. A., Bhola, B., Evers, J. J. M., & Dijkhuizen, G. (1995). Logistic chain modeling. European Journal of Operational Research, 87, 1–20.
Beamon, B. M. (1998). Supply chain design and analysis: models and methods. International Journal of Production Economics, 55, 281–294.
Sarmiento, A. M., & Nagi, R. (1999). A review of integrated analysis of production-distribution systems. IIE Transactions, 31, 1061–1074.
Azadivar, F. (1999). Simulation optimization methodologies. Proceedings of the 1999 Winter Simulation Conference, 1 (pp. 93–100).
Lacksonen, T. (2001). Empirical comparison of search algorithms for discrete event simulation. Computers and Industrial Engineering, 40(1/2), 133–148.
Fonseca, C. M., & Fleming, P. J. (1993). Genetic algorithm for multiobjective optimization: Formulation, discussion and generalization. Proceedings of the 5th Internationa Confernce on Genetic Algorithms (pp. 416–423). Morgan Kaufmann: San Mateo, CA.
Horn, J., Nafpliotis, N., & Goldberg, D. E. (1994). A niched Pareto genetic algorithm for multiobjective optimization. Proceedings of the 1st IEEE Internationa Conference on Evolutionary Computation (pp. 82–87). Piscataway, NJ.
Deb, K., Pratap, A., Agarwal, S., & Meyarivan, T. (2002). A fast and elitist multiobjective genetic algorithm: NSGA-II. IEEE Transactions on Evolutionary Computation, 6, 182–197.
Coello, C. A. C. (2000). An updated survey of ga-based multiobjective optimization techniques. ACM Computing Surveys, 32, 109–143.
Goldberg, D. E. (1986). Genetic algorithms in search, optimization, and machine learning. Reading, MA: Addison-Wesley.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2011 Springer-Verlag London Limited
About this chapter
Cite this chapter
Benyoucef, L., Xie, X. (2011). Supply Chain Design Using Simulation-Based NSGA-II Approach. In: Wang, L., Ng, A., Deb, K. (eds) Multi-objective Evolutionary Optimisation for Product Design and Manufacturing. Springer, London. https://doi.org/10.1007/978-0-85729-652-8_17
Download citation
DOI: https://doi.org/10.1007/978-0-85729-652-8_17
Published:
Publisher Name: Springer, London
Print ISBN: 978-0-85729-617-7
Online ISBN: 978-0-85729-652-8
eBook Packages: EngineeringEngineering (R0)