Development of a Simultaneous Design for Supply Chain Process for the Optimization of the Product Design and Supply Chain Configuration Problem

Abstract

:In the complex business environment of today, it is well recognized that paying insufficient attention to product design and the supply chain might result in financial losses due to both demand generation and profitability problems. This article aims to investigate and quantify the potential benefits of a process called Design for Supply Chain, which tackles optimization of product and supply chain design decisions simultaneously via mathematical modeling and optimization methods. The results, based on the optimization with illustrative data, suggest that this concurrent optimization provides better visibility and higher profits by achieving a delicate balance between selecting a better product design and constructing a cost efficient supply chain.