Multi-objective mathematical model for the redesign of supply chains considering financial criteria optimisation and scenarios

Abstract

This paper considers the redesign problem of a supply chain for mass consumer products, considering financial criteria and scenarios of demand. An established supply chain is adopted as the starting point. The central problem lies in determining the closure and consolidation of distribution centres. The problem is solved using a multi-objective mixed-integer linear programming model, considering two objective functions: the maximisation of the net present value (NPV) of the supply chain and the minimisation of the financial risk. The efficiency of the mathematical model is tested with real data from a Colombian multinational manufacturer of mass consumer products. The results confirm the model's efficiency and the positive impact on the determination of the NPV and the financial risk of the company.