Two-Layer Multi-Period Multi-Product Supply Chain Design

Supply chain network design is one of the basic problems in supply chain management. Its major aim is to determine the structure of the whole channel in which products are produced and distributed so that an economic result, and sometimes some non-economic results, can be achieved. The node companies nowadays keep strengthening the impact of the supply chain in order to increase sustainable competitive advantages. As a result, to build a strong supply chain network has attracted much attention. Consequently, in order to get the best network configuration, supply chain design models which can reflect the various complex situations in real business are becoming more and more important.To study the two-layer multi-period multi-product supply chain design, this paper utilizes some theories and methods synthetically, such as supply chain management, operation management, inventory theory and optimization theory etc. It studies several basic problems as follows: two-layer multi-period multi-product supply chain design model under deterministic demand; two-layer multi-period multi-product supply chain design model under stochastic demand; two-layer multi-period multi-product supply chain design model under stochastic demand with multi-objectives.The main work and contributions of the paper can be concluded in the following parts:Chapter one: Firstly, it analyzes the research background and significance of the paper and introduces the relative concepts of supply chain network design. Secondly, it summarizes and remarks the existing literatures of supply chain network design, points out its shortages and specifies the feasible orientation of the paper. Finally, it specifies the research content and builds a framework for the paper.Chapter two: It studies the method to build a two-layer multi-period multi-product supply chain design model under deterministic demand. Firstly, it states the overall problem that the model is about to solve. Secondly, it introduces the construction of the deterministic model by its constraints and its objective. Finally, it applies the model in a motivating example and lists some parts of the results for the comparative analysis in the following chapters.Chapter three: It studies the method to build a two-layer multi-period multi-product supply chain design model under stochastic demand. In order to simulate stochastic demand in the model, it first introduces some prediction methods. After that, a computer simulation method—Mont Carlo Method is introduced. Then, it extends the deterministic model in the last chapter to the stochastic enviroment by its constraints and its objective. Finally, it applies the model in the same motivating example, only that the demand data is changed to be stochastic, and carries out a comparative analysis with the results from the deterministic model. It finds out: the stronger the demand randomness is, the higher the cost needs to be in order to maintain the same customer satisfaction level.Chapter four: It studies the method to build a two-layer multi-period multi-product supply chain design model under stochastic demand with multi-objectives. It first introduces the concept of customer satisfaction and financial risk. Then, it extends the single-objective stochastic model in the last chapter to the multi-objective field. After that, the model is applies to the same example, only that two more objectives now are considered, and comparative analysis is performed in order to study how customer satisfaction and financial risk will affect the network configuration. The conclusion is as follows: to minimize cost and maximize customer satisfaction level are contradictory objectives; financial risk restriction will limit the solution cost variation range in different situations.The main innovations are as follows: (1). Two-layer multi-period multi-product supply chain design model under stochastic demand.The paper extends the existing deterministic two-layer multi-period multi-product model to the deterministic environment. It finds out that under the same customer satisfaction level, the stronger is demand randomness, the higher is the minimized cost.(2). two-layer multi-period multi-product supply chain design model under stochastic demand with multi-objectives.The paper further extends the model mentioned above to the multi-objective field. It finds out that to minimize cost and maximize customer satisfaction level are contradictory objectives; financial risk restriction will limit the solution cost variation range in different situations.