2.3. Additional issues for modeling
Many authors do not present specific models to
manage the supply chain, but describe important
additional aspects to consider in any formulation.
The most important references found to date are
presented below.
In the design of a global supply chain model, it is
strictly necessary to aggregate the suppliers, customers,
and products into some kind of 'zones' for
suppliers and customers, and into groups for products.
Geoffrion (1977) presents a description of how
to obtain an adequate method of aggregation of
suppliers, when the analyst wants to gather a subset
of items in a logistic planning model. This method is developed by considering a specific planning model,
which includes variable procurement and transportation
costs, and a general function for facility-related
costs and outbound transportation costs. Lower and
upper bounds on the flows of procured items, demand
satisfaction of customers, andother constraints
for system feasibility are considered in the model.
This is then transformed into another model with
aggregated items, and the relationship between the
two is developed through an 'a priori' bound on the
difference between their optimal values. An advantage
of this approach, according to the author, is that
the bound may be found before optimizing the aggregate
model.
2.3. Additional issues for modelingMany authors do not present specific models tomanage the supply chain, but describe importantadditional aspects to consider in any formulation.The most important references found to date arepresented below.In the design of a global supply chain model, it isstrictly necessary to aggregate the suppliers, customers,and products into some kind of 'zones' forsuppliers and customers, and into groups for products.Geoffrion (1977) presents a description of howto obtain an adequate method of aggregation ofsuppliers, when the analyst wants to gather a subsetof items in a logistic planning model. This method is developed by considering a specific planning model,which includes variable procurement and transportationcosts, and a general function for facility-relatedcosts and outbound transportation costs. Lower andupper bounds on the flows of procured items, demandsatisfaction of customers, andother constraintsfor system feasibility are considered in the model.This is then transformed into another model withaggregated items, and the relationship between thetwo is developed through an 'a priori' bound on thedifference between their optimal values. An advantageof this approach, according to the author, is thatthe bound may be found before optimizing the aggregatemodel.
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