| Due to the globalization of the economy cost efficient supply chains are not only desirable but they have become a requirement for survival. This goal is assisted by optimized allocation of resources and it is supported by information technology, analytical optimization methods, as well as collaboration, partnership and coordination among all stages and their functional areas of the extended supply chain. This research presents an integrated supply chain strategic optimization model using mixed-integer programming and activity-based costing applied to a facility location and product allocation problem.;An integrated deterministic, single-period, multi-commodity, multi-echelon production-distribution supply chain strategic optimization model is formulated incorporating model features such as inbound and outbound global optimization, generic abstract model capable modeling “n” stages and “m” links within design configuration, activity-based costing in the model's structure as well as products' bill of materials. The model is demonstrated with a Tier-1 international automotive manufacturer test case. |
