Abstract—This paper proposes a dynamic mixed integer linear program (MILP) for design and planning a multi echelon multi product supply chain. The main focus of this paper is the expansion of supply chain from a strategic view point. Here we consider some potential points for establishment of production units and warehouses during planning horizon in which two types of warehouses (private, public) have been considered. Development of the designed supply chain will be planned according to cumulative net income from the first period. This model aim to select suppliers, determine quantity of each raw material to be supplied by each supplier, quantity of each product to be produced in each production unit, quantity of each product to be sent to each warehouse, and quantity of each product to be sent to each market and some other strategic and tactical decisions in order to maximize net profit of the supply chain.
—Strategic supply chain planning; dynamic modeling; linear programming.
M. Bashiri is with the Department of Industrial engineering, Shahed University, Tehran, Iran (e-mail: Bashiri@shahed.ac.ir).
H. Badri is student of master of Industrial engineering, Shahed University, Tehran, Iran (e-mail: firstname.lastname@example.org).
Cite: Mahdi Bashiri and Hossein Badri, "A Dynamic Model for Expansion Planning of Multi Echelon Multi Commodity Supply Chain," International Journal of Engineering and Technology
vol. 2, no. 1, pp. 85-93, 2010.