Mathematical Modeling in Supply Chain Network (in Iranian Auto Manufacturing Industry)

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Abstract

The logistic costs contribute a major part of products’ sales price to the extent that in the United States 30% of product cost is the logistic costs. In this article you will find, from the operational research viewpoint, the design of network and mathematical modeling for optimization of the logistic costs in automotive industries.
The framework of proposed plan is the merge in transit system, and in this model, there are merge centers between the origin and destination as the first rule, and secondly, instead of single product flow, there are multi commodities. Merge centers are capacitated as the third rule and finally the inventory should be the minimum quantity.
The variety of material handling is available with piecewise linear cost function. The cost and time factor in the design of network had been considered to optimize the cost of transportation, warehousing and delivery times to final customers.

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