Mathematical modelling of multi-product ordering in three-echelon supply chain networks

Abstract

This paper proposes a mixed integer linear programming model for a multi-product ordering in a three-echelon supply chain network, where multiple manufacturers supply multiple warehouses with multiple products, which in turn distribute the products to the multiple retailers involved. The model considers practical production constraints such as production capacity, backorder allowances, and economically-viable minimum order quantities. Numerical computations show that the model can efficiently solve small-sized problem instances. (c) 2019, IEOM Society International.