Simultaneous optimization of the design of the product, process, and supply chain for formulated product

Abstract

[EN] In this work, an integrated framework and a solution procedure are developed for the design of formulated products. The framework considers the design of the manufacturing process, the products, and supply chains simultaneously. The problem is a multi-period MINLP. A solution procedure consisting of two stages is developed. In stage 1, the model is initialized with the data provided by the market analysis and the optimal formulation for each product and for each location, individually. In stage 2, the model is optimized within the feasible region using the information from stage 1, and the amounts of raw material purchased from each supplier, product manufactured at each location, and product purchased by each customer are determined. The algorithm is used to evaluate the design of powder detergents in Europe. Together with the location of the facilities, product composition, suppliers and price policies are selected.