Minimization of the total operating cost using supply chain optimization model

Abstract

In today s competitive world the success of an industry is contingent upon the management of its supply chain It crystallizes concepts about integrated business planning that have been espoused by logistics experts strategists and operations research practitioners Today integrated planning is possible due to advances in information technology but most companies still have much to learn about implementing new analytical tools needed to achieve it newlineA supply chain consists of all parties involved directly or indirectly in fulfilling a customer request Optimization is the methodology for improving the quality and desirability of a product or product concept It is the process of finding function extrema to solve problems and finding an alternative with the highest achievable performance or efficiency at a low cost under the given constraints by maximizing desired factors and minimizing undesired ones Management is a process of integrating and utilizing suppliers manufacturers warehouses and retailers so that goods are produced and delivered at the right quantities and at the right time while minimizing costs as well as satisfying customer requirements newline newline