Modeling supply network configuration problems with varying demand profiles

Abstract

In this paper, we develop a novel multi-objective modeling approach to support supply network configuration decisions, while considering varying demand profiles. In so doing, we illustrate how such an approach could contribute to building supply network robustness and resilience. The proposed model entails two key objectives; minimizing lead time and cost across the supply network. The solution approach first employs a bidding mechanism to select a set of supply network entities that match with a given demand profile from a candidate pool of entities. It then applies the popular technique known as N on-dominated Sorting Genetic Algorithm-II to generate a set of Pareto-optimal solutions representing alternative supply network configurations. The proposed model is tested on a case study of a refrigerator supply network to draw delivery time and cost comparisons under static and dynamic demand profiles.