Mathematical Problems in Engineering
Volume 2010 (2010), Article ID 450612, 16 pages
doi:10.1155/2010/450612
Research Article

A Four-Type Decision-Variable MINLP Model for a Supply Chain Network Design

M. M. Monteiro,1 J. E. Leal,2 and F. M. P. Raupp2

1Departamento de Engenharia de Produção, Universidade Federal Fluminense (TEP-UFF), Niterói, Brazil
2Departamento de Engenharia Industrial, Pontifícia Universidade Católica do Rio de Janeiro (DEI-PUC-Rio), Rio de Janeiro, Brazil

Received 3 August 2010; Revised 26 November 2010; Accepted 2 December 2010

Academic Editor: Piermarco Cannarsa

Copyright © 2010 M. M. Monteiro et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

We propose a mixed integer nonlinear programming model for the design of a one-period planning horizon supply chain with integrated and flexible decisions on location of plants and of warehouses, on levels of production and of inventory, and on transportation models, considering stochastic demand and the ABC classification for finished goods, which is an NP-hard industrial engineering optimization problem. Furthermore, computational implementation of the proposed model is presented through the direct application of the outer approximation algorithm on some randomly generated supply chain data.