Variations in the Flow Approach to CFCLP-TC for Multiobjective Supply Chain Design

Abstract

We review the problem for the design of supply chains called Capacitated Fixed Cost Facility Location Problem with Transportation Choices (CFCLP-TC). The problem is based on a production network of two echelons with multiple plants, a set of potential distribution centers, and customers. The problem is formulated as an optimization model with two objective functions based on time and cost. This paper proposes three changes to the original model to compare the sets of efficient solutions and the computational time required to obtain them. The main contribution of this paper is to extend the existing literature by incorporating approaches for the supply of product to customers through multiple sources, the direct flow between plants and customers, without this necessarily implying removing the distribution centers, and the product flow between distribution centers. From these approaches, we generate mathematical programming models and propose to solve through the epsilon-constraint approach for generating Pareto fronts and thus compare each of these approaches with the original model. The models are implemented in GAMS and solved with CPLEX.