1Research Scholar of Punjab Technical University, Kapurthala, Punjab, India
2Professor, Deptartment of Mechanical Engineering, BCET, Gurdaspur, Punjab, India
3Professor, Department of Industrial and Production Engineering, NIT, Jalandhar, Punjab, India
This paper describes a strategic level model of supply chain management (SCM). It explains overall supply chain issues, strategic importance of SCM, and an example of mathematical formulation. A supply chain is a global network of organizations that cooperate to improve the flows of material and information between suppliers and customers at the lowest cost and the highest speed. The objective of a supply chain is customer satisfaction. At the strategic level, a supply chain can be considered as being composed of five activities: buy, make, move, store and sell. The main aim of this paper is to show a strategic level model for supply chain of an automobile industry in mathematical terms, with an example of mathematical formulation. In this paper, a mixed integer linear programming (MILP) model is formulated first, and then alternative solution procedures are introduced.
Supply Chain Management, Echelon, MILP-Mixed Integer Linear Programming, LINGO
