Production-distribution network design of a global supply chain alliance from the key player’s perspective. (English) Zbl 1141.90423

Summary: A key player in a supply chain (SC) is the member who overlooks and leads others. Although it can compel its autonomous members to follow the planning of a production-distribution network (PDN), the key player has to create an environment in which the partnership with suppliers can also grow accordingly. Without the effective partnership, the efforts increase in managing and integrating the information and material flow across the PDN. Hence, while designing the PDN, the key player has to consider the constraint of the autonomous suppliers also seeking maximum profits as their business goals. In addition, to alleviate the impact of uncertainty on the PDN of a global SC, the strategy of alternative design features is incorporated in the PDN design model. In this paper, the problem for key player’s PDN design with alternative design features (KPDN/ADF) is formulated as a bi-level programming problem. An extended genetic algorithm is proposed to solve the KPDN/ADF problem. The experiment results showed that the proposed algorithm can solve the problem satisfactorily. Furthermore, incorporating the product design strategy of alternative design features can make the key player’s PDN have better profit under the uncertainty of the currency exchange rate. An illustrative global SC of personal computers/notebooks is also provided to demonstrate the applicability of the KPDN/ADF design model.


90B35 Deterministic scheduling theory in operations research
90B05 Inventory, storage, reservoirs
90B06 Transportation, logistics and supply chain management
90B30 Production models
Full Text: DOI


[1] DOI: 10.1287/inte.25.1.69
[2] Bard JF, Practical Bilevel Optimization (1998)
[3] DOI: 10.1016/S0925-5273(98)00079-6
[4] Cohen MA, The Management of Productivity and Technology in Manufacturing pp 153– (1987)
[5] Cohen MA, J. Manuf. Op. Manage. 2 pp 81– (1989)
[6] Cohen MA, J. Manuf. Op. Manage. 3 pp 269– (1990)
[7] Geoffrion AM, Studies in operations management pp 178– (1978)
[8] Handfield RB, Supply Chain Redesign (2002)
[9] DOI: 10.1007/BF01586088 · Zbl 0588.90053
[10] Kraemer KL, Dell Computer: Organization of a Global Production Network (2002)
[11] DOI: 10.1108/09574099610805485
[12] DOI: 10.1016/j.compind.2004.02.003
[13] DOI: 10.1111/j.1475-3995.1996.tb00036.x · Zbl 0863.90103
[14] DOI: 10.1016/S0305-0483(99)00080-8
[15] DOI: 10.1016/S0377-2217(01)00277-6 · Zbl 1081.90621
[16] DOI: 10.1016/0925-5273(91)90099-F
[17] DOI: 10.1080/00207540310001631601 · Zbl 1175.90243
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.