A hierarchical process industry production–distribution planning model |
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| Authors: | K Das S Sengupta |
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| Institution: | 1. Departmento de Ingeniería Industrial, Pontificia Universidad Javeriana, Bogotá, Colombia;2. IN3 – Computer Science, Multimedia and Telecommunications Department, Open University of Catalonia, Barcelona, Spain;3. Doctorado en Logística y Gestión de Cadenas de Suministros, Universidad de La Sabana, Chía, Colombia;1. School of Economics and Management, Hebei University of Technology, Tianjin 300401, P. R. China;2. School of Economics and Management, Chongqing Jiaotong University, Chongqing 40074, P. R. China;1. Universidad Tecnológica Nacional, Facultad Regional Concepción del Uruguay, Ing. Pereyra 676, (3260) Concepción del Uruguay, Entre Ríos, Argentina;2. INTEC (Universidad Nacional del Litoral - CONICET), Güemes 3450, (3000) Santa Fe, Santa Fe, Argentina |
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| Abstract: | Global and multinational companies are subject to government regulations in addition to other international uncertainties due to operation in diverse geographic locations. Such government regulations often affect the cost of raw materials adversely which in turn creates adverse impact on product cost and forces the decision makers to re-evaluate current production–distribution plan. This paper presents an integrated supply chain model for simultaneous strategic and operational planning of a strategic business unit (SBU) in a global supply chain affected by government regulations. The model incorporates impact of changes in cost of inputs on expected product cost and solves for an optimal strategic and operational plan for the entire supply chain. In addition, the model includes exchange rates, border crossing costs and solves a multi-period model with due consideration of uncertainties in demand and transportation time. |
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