Design and Operation of an Enterprise-wide Process Network Using Operation Policies. 1. Design

Abstract

In recent years there has been great industrial and academic interest in the design and operation of enterprise-wide supply chains because of their economic impact under increasingly competitive and narrow profit environments. In this two-paper series, a new modeling framework is presented in order to establish systematic and effective decision support tools for the enterprise-wide supply chains which consist of a large number of industrial production elements such as suppliers, plants, and demands that may be in geographically distinct places. Particularly in part 1, the focus is how to incorporate multiple nodes for the purpose of designing the supply chain. After showing an example to motivate the need of an operating policy in the design of multiple plants, three operating policies, namely, coordination, cooperation, and competition are proposed. Mixed integer linear programming (MILP) models based on these policies are then presented. An illustrative example is presented to demonstrate the potential of the proposed framework. Uncertainty is also one of the most important issues. Therefore in part 2, the effect of uncertainty will be investigated in detail using multiperiod planning models based on the proposed operating policies.

Advances in Integrated and Sustainable Supply Chain Planning

“…First, they allocate aggregated demand into the SC entities using different connectivity policies (Ryu and Pistikopoulos 2005); then, single-site planning problems are constructed for individual entities. A multi-period MINLP for a petrochemical complex is formulated by Shulz et al (2005).…”

Multisite Refinery Network Integration and Coordination

“…They included a number of additional supply chain type constraints such as single sourcing, internal sourcing, and transportation times. Ryu and Pistikopoulos (2005) presented an MILP model for the design of enterprisewide supply chains in the chemical industry. In a similar effort, Bok et al (2000) extended the work by Norton and Grossmann (1994) to incorporate operational decisions, such as inventory profile, changeover cost, and intermittent supplies over multiple operating sites, over a short term horizon.…”

Modeling supply chain operations as multi-level programming problems and their parametric programming based computation methodology

“…They analyzed the supply chain operation in terms of interaction and categorized them into coordination, cooperation and competition. Ryu and Pistikopoulos [11,12] extended the work by addressing how supply chain operation policy can be modeled based on their operating policy. Ryu et al [13] provided a bilevel programming modeling on the supply chain planning problem in the context of the sequential relationship between manufacturing and transportation operations.…”