Supply chain network design (SCND) identifies the production and distribution resources essential to maximizing a network’s profit. Once implemented, a SCND impacts a network’s performance for the long-term. This dissertation extends the SCND literature both in terms of model scope and solution approach. The SCND problem can be more realistically modeled to improve design decisions by including: the location, capacity, and technology attributes of a resource; the effect of the economies of scale on the cost structure; multiple products and multiple levels of supply chain hierarchy; stochastic, dynamic, and correlated demand; and the gradually unfolding uncertainty. The resulting multistage stochastic mixed-integer program (MSMIP) has no known general purpose solution methodology. Two decomposition approaches—end-of-horizon (EoH) decomposition and nodal decomposition—are applied. The developed EoH decomposition exploits the traditional treatment of the end-of-horizon effect. It rests on independently optimizing the SCND of every node of the last level of the scenario-tree. Imposing these optimal configurations before optimizing the design decisions of the remaining nodes produces a smaller and thus easier to solve MSMIP. An optimal solution results when the discount rate is 0 percent. Otherwise, this decomposition deduces a bound on the optimality-gap. This decomposition is neither SCND nor MSMIP specific; it pertains to any application sensitive to the EoH-effect and to special cases of MSMIP. To demonstrate this versatility, additional computational experiments for a two-stage mixed-integer stochastic program (SMIP) are included. This dissertation also presents the first application of nodal decomposition in both SCND and MSMIP. The developed column generation heuristic optimizes the nodal sub-problems using an iterative procedure that provides a restricted master problem’s columns. The heuristic’s computational efficiency rests on solving the sub-problems independently and on its novel handling of the master problem. Conceptually, it reformulates the master problem to avoid the duality-gap. Technologically, it provides the first application of Leontief substitution flow problems in MSMIP and thereby shows that hypergraphs lend themselves to loosely coupled MSMIPs. Computational results demonstrate superior performance of the heuristic approach and also show how this heuristic still applies when the SCND problem is modeled as a SMIP where the restricted master problem is a shortest-path problem.

In recent years the amount of newly registered electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles has increased rapidly in the Swedish market. These vehicles could be classified as battery-powered electric vehicles, and a majority carry a lithium-ion battery. The demand for lithium is expected to increase considerably, as a result of such a swift growth in battery-powered electric vehicles. Thus, if the recycling rate of lithium stays at a low level, demand could reach a scarcity-level by 2050. While neither any infrastructure nor an established process for recycling lithium-ion batteries currently exists in Sweden, this study aims to provide necessary input and verified tools for the design of a future reverse supply chain for discarded lithium-ion batteries in Sweden. The literature review of this study covers the subjects of reverse logistics, supply chain network design, and operations research. A thorough situation analysis of the Swedish market for battery-powered electric vehicles is conducted, and the composition, function, and characteristics of lithium-ion batteries are studied. The study finds that estimations of future demand of recyclable lithium-ion batteries in Sweden could be between 206 711 and 726 974 tons accumulated, based on actual and predicted sales numbers until 2030. Even if it is obvious that there are going to be large quantities of such batteries requiring recycling in the future, and even if some established processes exist, there is no defined supply chain for the collection of those batteries. Finally, a mixed-integer programming model for the design and development of a future reverse supply chain is presented. The model, characterized as a discrete multi-period facility location/allocation model, can with minor modifications be used for problems with fluctuating demand or when the demand is assumed to slowly progress until it has reached a steady state.

Supply chain management has been recently introduced to address the integration of organizational functions ranging from the ordering and receipt of raw materials throughout the manufacturing processes, to the distribution and delivery of products to the customer. Its application demonstrates that this idea enables organizations to achieve higher quality products, better customer service, and lower inventory cost. In order to achieve high performance, supply chain functions must operate in an integrated and coordinated manner. Several challenging problems associated with integrated supply chain design are: (1) how to model and coordinate the supply chain business processes, specifically in the area of supply chain workflows; (2) how to analyze the performance of an integrated supply chain network so that optimization techniques can be employed to improve customer service and reduce inventory cost; and (3) how to evaluate dynamic supply chain networks and obtain a comprehensive understanding of decision-making issues related to supply network configurations. These problems are most representative in the supply chain theory's research and applications. There are three major objectives for this research. The first objective is to develop viable modeling methodologies and analyzing algorithms for supply chain business processes so that the logic properties of supply chain process models can be analyzed and verified. This problem has not been studied in integrated supply chain literature to date. To facilitate the modeling and verification analysis of supply chain workflows, an object-oriented Petri nets based modular modeling and analyzing approach is presented. The proposed, structured, process-modeling algorithm provides an effective way to design structured supply chain business processes. The second objective is to develop a network of inventory-queue models for the performance analysis and optimization of an integrated supply network with inventory control at all sites. An inventory-queue is a queueing model that incorporates an inventory replenishment policy for the output store. This dissertation extends the previous work done on the supply network model with base-stock control and service requirements. Instead of one-for-one base stock policy, batch-ordering policy and lot-sizing problems are considered. To determine the replenishment lead times of items at the stores, a fixed-batch target-level production authorization mechanism is employed to explicitly obtain performance measures of the supply chain queueing model. The validity of the proposed model is illustrated by comparing the results from the analytical performance evaluation model and those obtained from the simulation study. The third objective is to develop simulation models for understanding decision-making issues of the supply chain network configuration in an integrated environment. Simulation studies investigate multi-echelon distribution systems with installation stock reorder policy and echelon stock reorder policy. The results show that, depending on the structure of multi-echelon distribution systems, either echelon stock or installation stock policy may be advantageous. This dissertation presents a new transshipment policy, called "alternate transshipment policy," to improve supply chain performance. In an integrated supply chain network that considers both the distribution function and the manufacturing function, the impacts of component commonality on network performance are also evaluated. The results of analysis-of-variance and Tukey's tests reveal that there is a significant difference in performance measures, such as delivery time and order fill rates, when comparing an integrated supply chain with higher component commonality to an integrated supply chain with lower component commonality. Several supply chain network examples are employed to substantiate the effectiveness of the proposed methodologies and algorithms. / Ph. D.

The incentives and policies spearheaded by the U.S. government have created abundant opportunities for renewable fuel production and commercialization. Bio-butanol is a very promising renewable fuel for the future transportation market. Many efforts have been made to improve its production process, but seldom has bio-butanol research discussed the integration and optimization of a cellulosic bio-butanol supply chain network. This study focused on the development of a physical supply chain network and the optimization of a green supply chain network for cellulosic bio-butanol. To develop the physical supply chain network, the production process, material flow, physical supply chain participants, and supply chain logistics activities of cellulosic bio-butanol were identified by conducting an onsite visit and survey of current bio-fuel stakeholders. To optimize the green supply chain network for cellulosic bio-butanol, the life cycle analysis was integrated into a multi-objective linear programming model. With the objectives of maximizing the economic profits and minimizing the greenhouse gas emissions, the proposed model can optimize the location and size of a bio-butanol production plant. The mathematical model was applied to a case study in the state of Missouri, and solved the tradeoff between the feedstock and market availabilities of sorghum stem bio-butanol. The results of this research can be used to support the decision making process at the strategic, tactical, and operational levels of cellulosic bio-butanol commercialization and cellulosic bio-butanol supply chain optimization. The results of this research can also be used as an introductory guideline for beginners who are interested in cellulosic bio-butanol commercialization and supply chain design. / Ph. D. / Renewable energy is one of the most effective tools to fight the threats of climate change, global warming, food price rising, and energy dependence. Cellulosic bio-butanol, a renewable alcohol-based biofuel, is a very promising energy candidate to support the fight for these threats. Due to its low water miscibility, similar energy content and octane number with gasoline, blending ability with gasoline in any proportions, and its directly utilization in gasoline engine, cellulosic bio-butanol is a potential candidate to replace gasoline. Unlike bioethanol, which only relies its fuel distribution on railway and tanker trucks, bio-butanol is compatible with not only railway and tanker trucks but also current pipeline based fuel distribution infrastructures. In order to increase the competitively of this promising energy candidate, the cellulosic bio-butanol is worth to be commercialized. An important step for the commercialization of cellulosic bio-butanol is the network design of its supply chain. In this research, the supply chain network of cellulosic bio-butanol was constructed and optimized. The supply chain network of cellulosic bio-butanol was constructed by identifying the three important aspects of a supply chain network structure: structure dimension, participants in supply chain, and supply chain business process links. A) The structure dimension was identified by understanding the production process of bio-butanol. A case study was used to study the production process of cellulosic bio-butanol. B) The supply chain business process links were identified by conducting a survey on the logistics activities in bio-butanol supply chain. C) The participants of cellulosic bio-butanol supply chain were identified by identifying the physical infrastructure of cellulosic bio-butanol supply chain. The results of the literature review, case study and survey were analyzed to identify the physical infrastructure and the participants in the supply chain. It was found out that the supply chain network structure of cellulosic bio-butanol includes 4 tiers of horizontal structure: suppliers, producers, distributors, and customers. The suppliers refer to the local farmers and feedstock aggregators. The producers are the cellulosic bio-butanol production plants. The distributors are the fuel logistics companies and fuel distributors. The customers are the fuel companies. The cellulosic bio-butanol producers use contracts to connect with biomass suppliers, fuel distributors, and bio-butanol customers. Based on the proposed network structure of cellulosic bio-butanol supply chain, the optimization of the green cellulosic bio-butanol supply chain network was conducted. A multi-objective linear integer programming model was developed to design the green cellulosic bio-butanol supply chain network. Life cycle analysis (LCA) and net present value techniques were used in the proposed model to formulate the environmental and economic objective function. With the objectives of maximizing the economic profits while minimizing the greenhouse gas (GHG) emissions, the proposed model can optimize the location and the size of bio-butanol production plant. The model was applied using data from the state of Missouri (MO). The results showed that the optimal location of cellulosic bio-butanol production plant is in the southeastern region of MO. And the production size of bio-butanol production plant is based on the tradeoff between the economic and environmental objectives. The lower GHG emissions results in a smaller size of production plant.

Today’s dynamic and increasingly competitive market had expanded complexities for global businesses pressuring companies to start leveraging on Big Data solutions in order to sustain the global competitions by becoming more data-driven in managing their supply chains.The main purpose of this study is twofold, 1) to explore the implications of applying analytics designing supply chain networks, 2) to investigate the link between operational and strategic management levels when making strategic decisions using Analytics.Qualitative methods have been applied for this study to gain a greater understanding of the Supply Chain Analytics phenomenon. An inductive approach in form of interviews, was performed in order to gain new empirical data. Fifteen semi-structured interviews were conducted with professional individuals who hold managerial roles such as project managers, consultants, and end-users within the fields of Supply Chain Management and Big Data Analytics. The received empirical information was later analyzed using the thematic analysis method.The main findings in this thesis relatively contradicts with previous studies and existing literature in terms of connotations, definitions and applications of the three main types of Analytics. Furthermore, the findings present new approaches and perspectives that advanced analytics apply on both strategic and operational management levels that are shaping supply chain network designs.

Nesta tese propõe-se um método heurístico para o problema de Projeto de Rede da Cadeia de Suprimentos (Supply Chain Network Design) considerando vários aspectos de relevância prática, tais como: fornecedores e matérias-primas, localização e operação de instalações, atribuição de Centros de Distribuição (CD), e grande número de clientes e produtos. Uma eficiente abordagem heurística de duas fases é proposta para a obtenção de soluções viáveis para os problemas, que inicialmente é modelado como um Programa Linear Inteiro Misto (PLIM) de grande escala. Na fase de construção, uma estratégia de Linear Programming Rounding é aplicada para se obter os valores iniciais para as variáveis de localização inteira do modelo. Simultaneamente, um método Multi-start foi desenvolvido para gerar soluções iniciais diversificadas para cada nova iteração da heurística de Rounding. Na segunda fase, dois procedimentos de Busca Local foram desenvolvidos no sentido de melhorar a solução fornecida pelo método de Rounding. Implementamos duas diferentes abordagens de Busca Local: remoção-inserção e troca. Uma técnica de Busca Tabu para orientar o procedimento de Busca Local para explorar os diferentes espaços de soluções foi desenvolvida. As formulações e algoritmos foram implementados na linguagem C++ utilizando ferramentas de otimização da COIN-OR. O método de solução foi experimentado em instâncias geradas aleatoriamente, com tamanhos diferentes em termos do número de parâmetros, tais como o número de produtos, zonas de clientes, CDs e fábricas considerando um sistema logístico de quatro níveis. As implementações computacionais mostram que o método de solução proposto obteve resultados satisfatórios quando comparados com a literatura. Para validar este método heurístico também foi usado em um caso realista, com base em dados de uma empresa de borracha que está reestruturando sua cadeia de suprimentos devido ao projeto de uma nova uma nova fábrica e produção de novos produtos. A abordagem heurística proposta revelou-se adequada para aplicação prática em um caso real de uma indústria multicommodity em um contexto determinístico. / In this thesis we propose a heuristic method for the Supply Chain Network Design (SCND) problem considering several aspects of practical relevance: suppliers and raw materials, location and operation facilities, distribution center (DC) assignments, and large numbers of customers and products. An efficient two-phase heuristic approach is proposed for obtaining feasible solutions to the problems, which is initially modeled as a large-scale Mixed Integer Linear Program (MILP). In the construction phase, a linear programming rounding strategy is applied to obtain initial values for the integer location variables in the model. Simultaneously, a Multi-start method was developed to generate diversified initial solutions from each new iteration in the rounding heuristic. In the second phase, two Local Search procedures were developed towards to improve the solution provided by the rounding method. We implemented two different Local Search approaches: removal-insertion and exchange. A Tabu Search technique was developed to guide the Local Search procedure to explore the different spaces of solutions. The formulations and algorithms were implemented in C++ code language using the optimization engine COIN-OR. The solution method was experimented in randomly generated instances, with different sizes in terms of the number of parameters, such as number of products, customer zones, DCs, and factories considering a four-echelon logistic system. The computational implementations show that the solution method proposed obtained satisfactory results when compared to the literature review. To validate this heuristic method was also used in a realistic case, based on data from a rubber company that is restructuring its supply chain due to the overture of a new factory, producing new products. The proposed heuristic approach proved appropriate to practical application in a realistic case of a multi commodity industry in a deterministic context.

Sample average approximation (SAA) is a well-known solution methodology for traditional stochastic programs which are risk neutral in the sense that they consider optimization of expectation functionals. In this thesis we establish sample average approximation methods for two classes of non-traditional stochastic programs. The first class is that of stochastic min-max programs, i.e., min-max problems with expected value objectives, and the second class is that of expected value constrained stochastic programs. We specialize these SAA methods for risk-averse stochastic problems with a bi-criteria objective involving mean and mean absolute deviation, and those with constraints on conditional value-at-risk. For the proposed SAA methods, we prove that the results of the SAA problem converge exponentially fast to their counterparts for the true problem as the sample size increases. We also propose implementation schemes which return not only candidate solutions but also statistical upper and lower bound estimates on the optimal value of the true problem. We apply the proposed methods to solve portfolio selection and supply chain network design problems. Our computational results reflect good performance of the proposed SAA schemes. We also investigate the effect of various types of risk-averse stochastic programming models in controlling risk in these problems.

Nesse trabalho apresentamos a modelagem matemática do Projeto de Rede da Cadeia de Suprimentos (Supply Chain Network Design) de uma empresa responsável pela produção e distribuição de commodities. O investimento em uma nova fábrica exige que a empresa tenha seu projeto logístico readequado. O desenvolvimento das formulações matemáticas é baseado no trabalho de Jayaraman e Pirkul (2001). Foram realizadas 3 (três) formulações matemáticas de diferentes abordagens para solução do projeto logístico. As implementações computacionais foram realizadas no CPLEX© Optimization Studio Academic Research versão 12.2. As experiências computacionais foram desenvolvidas através de cenários que buscaram representar problemas de dimensões reais. Ainda na etapa de experimentação foram realizadas análises de sensibilidade dos modelos. Um estudo para identificar as demandas de mercado e os custos de transporte foi realizado, sendo assim, foi possível aplicar os modelos no estudo de caso a partir de dados reais de demanda e custos. Para execução das instâncias reais foram selecionadas 2 (duas) abordagens distintas: Single-source e Arcbased. Diferentes market shares foram definidos para construção de novos cenários e instâncias reais foram executadas dentro de limites computacionais de tempo satisfatórios. Os resultados encontrados para cada cenário foram comparados e analisados em relação à resolução do problema proposto. A dissertação contribui para a área de modelagem da cadeia de suprimentos fornecendo modelos que apresentaram resultados satisfatórios para a tomada de decisão nessa fase do projeto logístico da indústria tema dessa pesquisa. / We present a mathematical modeling of the Supply Chain Network Design (SCND) for a company responsible for producing and distributing commodities. Investment in a new plant requires that the company has reconfigured its logistics project. The development of mathematical formulations is based on the work of Jayaraman and Pirkul (2001). Were performed three (3) mathematical formulations for different approaches to solving the logistics project. Computational implementations were done in CPLEX© Optimization Academic Research Studio version 12.2. Computational experiments were developed through scenarios that sought to represent problems of the real dimensions. Still in the experimentation fase were performed sensitivity analysis of models. A study to identify market demands and transportation costs was made, so the models could be applied in the case study data from actual demand and costs. For carrying out the actual instances were selected 2 (two) different approaches: Single-source-based and Arc. Different market shares were set to build new scenarios and actual instances have been implemented within limits satisfactory computational time. The results for each scenario were compared and analyzed for solving the proposed problem. The thesis contributes to modeling area of supply chain models that provide satisfactory results for decision making in this phase of the project's logistics industry theme of this research.

Nesta tese propõe-se um método heurístico para o problema de Projeto de Rede da Cadeia de Suprimentos (Supply Chain Network Design) considerando vários aspectos de relevância prática, tais como: fornecedores e matérias-primas, localização e operação de instalações, atribuição de Centros de Distribuição (CD), e grande número de clientes e produtos. Uma eficiente abordagem heurística de duas fases é proposta para a obtenção de soluções viáveis para os problemas, que inicialmente é modelado como um Programa Linear Inteiro Misto (PLIM) de grande escala. Na fase de construção, uma estratégia de Linear Programming Rounding é aplicada para se obter os valores iniciais para as variáveis de localização inteira do modelo. Simultaneamente, um método Multi-start foi desenvolvido para gerar soluções iniciais diversificadas para cada nova iteração da heurística de Rounding. Na segunda fase, dois procedimentos de Busca Local foram desenvolvidos no sentido de melhorar a solução fornecida pelo método de Rounding. Implementamos duas diferentes abordagens de Busca Local: remoção-inserção e troca. Uma técnica de Busca Tabu para orientar o procedimento de Busca Local para explorar os diferentes espaços de soluções foi desenvolvida. As formulações e algoritmos foram implementados na linguagem C++ utilizando ferramentas de otimização da COIN-OR. O método de solução foi experimentado em instâncias geradas aleatoriamente, com tamanhos diferentes em termos do número de parâmetros, tais como o número de produtos, zonas de clientes, CDs e fábricas considerando um sistema logístico de quatro níveis. As implementações computacionais mostram que o método de solução proposto obteve resultados satisfatórios quando comparados com a literatura. Para validar este método heurístico também foi usado em um caso realista, com base em dados de uma empresa de borracha que está reestruturando sua cadeia de suprimentos devido ao projeto de uma nova uma nova fábrica e produção de novos produtos. A abordagem heurística proposta revelou-se adequada para aplicação prática em um caso real de uma indústria multicommodity em um contexto determinístico. / In this thesis we propose a heuristic method for the Supply Chain Network Design (SCND) problem considering several aspects of practical relevance: suppliers and raw materials, location and operation facilities, distribution center (DC) assignments, and large numbers of customers and products. An efficient two-phase heuristic approach is proposed for obtaining feasible solutions to the problems, which is initially modeled as a large-scale Mixed Integer Linear Program (MILP). In the construction phase, a linear programming rounding strategy is applied to obtain initial values for the integer location variables in the model. Simultaneously, a Multi-start method was developed to generate diversified initial solutions from each new iteration in the rounding heuristic. In the second phase, two Local Search procedures were developed towards to improve the solution provided by the rounding method. We implemented two different Local Search approaches: removal-insertion and exchange. A Tabu Search technique was developed to guide the Local Search procedure to explore the different spaces of solutions. The formulations and algorithms were implemented in C++ code language using the optimization engine COIN-OR. The solution method was experimented in randomly generated instances, with different sizes in terms of the number of parameters, such as number of products, customer zones, DCs, and factories considering a four-echelon logistic system. The computational implementations show that the solution method proposed obtained satisfactory results when compared to the literature review. To validate this heuristic method was also used in a realistic case, based on data from a rubber company that is restructuring its supply chain due to the overture of a new factory, producing new products. The proposed heuristic approach proved appropriate to practical application in a realistic case of a multi commodity industry in a deterministic context.

Nesse trabalho apresentamos a modelagem matemática do Projeto de Rede da Cadeia de Suprimentos (Supply Chain Network Design) de uma empresa responsável pela produção e distribuição de commodities. O investimento em uma nova fábrica exige que a empresa tenha seu projeto logístico readequado. O desenvolvimento das formulações matemáticas é baseado no trabalho de Jayaraman e Pirkul (2001). Foram realizadas 3 (três) formulações matemáticas de diferentes abordagens para solução do projeto logístico. As implementações computacionais foram realizadas no CPLEX© Optimization Studio Academic Research versão 12.2. As experiências computacionais foram desenvolvidas através de cenários que buscaram representar problemas de dimensões reais. Ainda na etapa de experimentação foram realizadas análises de sensibilidade dos modelos. Um estudo para identificar as demandas de mercado e os custos de transporte foi realizado, sendo assim, foi possível aplicar os modelos no estudo de caso a partir de dados reais de demanda e custos. Para execução das instâncias reais foram selecionadas 2 (duas) abordagens distintas: Single-source e Arcbased. Diferentes market shares foram definidos para construção de novos cenários e instâncias reais foram executadas dentro de limites computacionais de tempo satisfatórios. Os resultados encontrados para cada cenário foram comparados e analisados em relação à resolução do problema proposto. A dissertação contribui para a área de modelagem da cadeia de suprimentos fornecendo modelos que apresentaram resultados satisfatórios para a tomada de decisão nessa fase do projeto logístico da indústria tema dessa pesquisa. / We present a mathematical modeling of the Supply Chain Network Design (SCND) for a company responsible for producing and distributing commodities. Investment in a new plant requires that the company has reconfigured its logistics project. The development of mathematical formulations is based on the work of Jayaraman and Pirkul (2001). Were performed three (3) mathematical formulations for different approaches to solving the logistics project. Computational implementations were done in CPLEX© Optimization Academic Research Studio version 12.2. Computational experiments were developed through scenarios that sought to represent problems of the real dimensions. Still in the experimentation fase were performed sensitivity analysis of models. A study to identify market demands and transportation costs was made, so the models could be applied in the case study data from actual demand and costs. For carrying out the actual instances were selected 2 (two) different approaches: Single-source-based and Arc. Different market shares were set to build new scenarios and actual instances have been implemented within limits satisfactory computational time. The results for each scenario were compared and analyzed for solving the proposed problem. The thesis contributes to modeling area of supply chain models that provide satisfactory results for decision making in this phase of the project's logistics industry theme of this research.