Multi-Objective Optimization
CHAPTER 1
INTRODUCTION
Competitiveness in today’s marketplace depends heavily on the ability of a company to handle the several important challenges like reducing total supply chain operating cost and reducing lead-times, increasing customer service levels, and improving product quality. In Figure a typical non integral supply chain is shown, in which the goods flow starts as raw materials at natural resources and ends with products at final customers. Raw material winners keep raw materials on stock and supply them to component manufacturers. Component manufacturers have an inventory of materials at the start of the production process and an inventory of components at the end. Product manufacturers hold inventories of products and components, the latter being supplied by component manufacturers. Wholesalers buy products from product manufacturers and hold central and regional stock in central and regional distribution centres respectively. Retailers get their supply from wholesalers and have products in local stock for sales to final customers. In today’s world, most supply chains still do not profit from supply chain management from natural resources to final customers.
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1.1 SUPPLY CHAIN MANAGEMENT
In early 1990s, the phrase “supply chain management” came in to use . In today’s global market, managing the entire supply chain becomes key factor for the successful business. World-Class organizations now realize that non-integrated manufacturing processes, non-integrated distribution processes and poor relationship with suppliers and customers are inadequate for their success. The challenges facing business organizations grow rapidly because of the globalization of commerce, global distribution of manufacturing and warehousing facilities, rapid commoditization of products, demand for customized products, competitive pressures, rapid advances of information technology, etc. The task of getting the right
INTRODUCTION
Competitiveness in today’s marketplace depends heavily on the ability of a company to handle the several important challenges like reducing total supply chain operating cost and reducing lead-times, increasing customer service levels, and improving product quality. In Figure a typical non integral supply chain is shown, in which the goods flow starts as raw materials at natural resources and ends with products at final customers. Raw material winners keep raw materials on stock and supply them to component manufacturers. Component manufacturers have an inventory of materials at the start of the production process and an inventory of components at the end. Product manufacturers hold inventories of products and components, the latter being supplied by component manufacturers. Wholesalers buy products from product manufacturers and hold central and regional stock in central and regional distribution centres respectively. Retailers get their supply from wholesalers and have products in local stock for sales to final customers. In today’s world, most supply chains still do not profit from supply chain management from natural resources to final customers.
[pic]
1.1 SUPPLY CHAIN MANAGEMENT
In early 1990s, the phrase “supply chain management” came in to use . In today’s global market, managing the entire supply chain becomes key factor for the successful business. World-Class organizations now realize that non-integrated manufacturing processes, non-integrated distribution processes and poor relationship with suppliers and customers are inadequate for their success. The challenges facing business organizations grow rapidly because of the globalization of commerce, global distribution of manufacturing and warehousing facilities, rapid commoditization of products, demand for customized products, competitive pressures, rapid advances of information technology, etc. The task of getting the right