transportation function of the system. The selection
of a transportation mode, the determination of the
fleet size, and the dispatching of different vehicles,
are examples of strategic, tactical, and operational
decisions, respectively.
The most comprehensive strategic problem is the
optimization of the complete supply chain. The
strategic design of a supply chain requires managers
to determine:
• the number, location, capacity, and type of manufacturing
plants and warehouses to use;
• the set of suppliers to select;
• the transportation channels to use;
• the amount of raw materials and products to
produce and ship among suppliers, plants, warehouses,
and customers; and
• the amount of raw materials, intermediate products,
and finished goods to hold at various locations
in inventory.
Many models have been formulated for the strategic
design of supply chains. We will call these
models 'strategic production-distribution' models.
One of the purposes of this paper is to review and
categorize the literature that addresses this kind of
models, with emphasis on Mixed Integer Programming
(MIP) models