Supply chain re-design: an industrial application case in the electric motors industry

RODRIGUEZ, MARIA ANALIA; HARJUNKOSKI, IIRO; GROSSMANN, IGNACIO E.

Pittsburgh

Encuentro; Enterprise-wide Optimization Annual Meeting; 2012

The main objective of this project is to redesign an optimal supply chain in the context of motors industry minimizing costs and deciding where to place warehouses, which installed warehouses should be eliminated, what are the stock capacities and safety stocks required as well as how to connect the different echelons of the supply chain in order to satisfy uncertain demand of motors. In this work we extend our previous model, considering a more general supply chain where multiple level of distribution centers are considered. This was motivated by the case study from the industry where small warehouses are fixed near customer locations and central distribution centers are located in strategic locations. Results from both approaches are presented and compared.