The model generates a system configuration that specifies the location and capacity of the manufacturing sites, the material flow, and the transportation routes within the network.
Some advantages of CMS such as simplification of material flow, reduction of transportation and queuing times, reduction of material handling cost and setup times, and the increase of machine utilization and throughput rates are declared in literatures (Muruganandam et al. 2005; Olorunniwo and Udo 2002; Wemmerlov and Hyer 1989).
At current stage, relative location of plants in an industrial area is determined by expertise based on material flow for shortening material transportation distance.
The layout of a manufacturing facility/system not only shapes its material flow pattern and influence transportation and operation cost, but also affects logistics and parts/machine assignment decisions.
Some tactical decisions such as determination of transportation modes in each link, material flow quantity, etc. in the presence of strategic decisions are made.
The proposed model is capable to determine the optimum numbers, locations, capacity of facilities, suitable transportation modes, appropriate technology at bio-refinery, material flow, and production planning in different periods.
Institue for Material Flow and Logistics.
It deals with a broad set of design issues (e.g., bill-of-material restrictions, international financial considerations, and material flow through the entire supply chain) using effective modeling devices (e.g., linearizing non-linearities that arise in modeling transfer prices and allocating transportation charges).
The strategic dynamic supply chain reconfiguration (DSCR) problem is to prescribe the location and capacity of each facility, select links used for transportation, and plan material flows through the supply chain, including production, inventory, backorder, and outsourcing levels.
