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A new mathematical model for a distribution network problem in a multi-product supply chain system: a real-case study

This paper presents a distribution network design problem in a multi-product supply chain system that involves locating production plants and distribution warehouses as well as determining the best strategy for distributing the product from plants to warehouses and from the warehouses to customers. The goal is to select the optimum numbers, locations and capacities of plants and warehouses to open, so that all customer demands of all product types are satisfied at minimum total costs of the distribution network. Unlike most of the previous researches, our study considers a multi-product supply chain system. We develop a mixed-integer mathematical programming model for designing a supply chain distribution network. Finally, this paper presents a real-case study to investigate designing a pharmaceutical supply chain distribution network. A possible extension is also offered in the conclusion.