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Global Production Network Optimization

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 594)

Abstract

The production network design process developed in Chapter 2.4 is split into a global network optimization phase at the country level and a site selection phase focusing on the evaluation of individual production sites within a country. In this chapter the mathematical optimization model required to support the global network optimization phase of specialty chemicals production networks is developed. To this end Chapter 3.1 briefly introduces general research in the field of quantitative location analysis. The literature specifically focusing on production network design is reviewed in greater detail in Chapter 3.2. Alternative approaches to model major elements of production networks and their applicability to specialty chemicals industry are discussed in Chapter 3.3 and tailored modeling approaches are developed. Chapter 3.4 contains the resulting Mixed-Integer Linear Programming (MILP) model and possible extensions to include features that were not required in the pilot application underlying this work (cf. Chap. 5). Finally, Chapter 3.5 presents the results of numerical performance tests to demonstrate the applicability of the model to problem instances of realistic size.

Keywords

Cash Flow Network Design Planning Horizon Transfer Price Production Network 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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© Springer-Verlag Berlin Heidelberg 2007

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