Minimum Cost Production and Transportation Plan. The case of Leather Industry

      Аннотация: Due to today’s continuously changing market conditions, manufacturing enterprises are facing more dif?cult challenges than ever before. Therefore, dispersed manufacturing is today becoming the main stream and the network manufacturing industry is becoming an important form of organizations. In this supply chain structure, a typical product starts with material input, followed by production, and ?nally distribution of the end product to customers. Hence this book cover two minimum cost networks for such supply chain synchronization with multiple production centers, transportation facilities and retailer centers in order to produce multiple commodities. The formulation consider positive lower bounds on demand arcs of the network using graph partitioning technique which is solved by network simplex method. Thus, our models can represent multi-commodity network flow problem which are different from generic multi-commodity network flow model formulation. The objective of each model is to minimize the total costs of operations which can be implemented in any supply chain coordination for both strategic and tactical

Ключевые слова: Supply Chain Managment, Network Flow, Minimum cost flow, Network simplex