A Two-Phase Dynamic Model for the Facility Location in Supply Chain Network

This paper studies dynamic facility location problem in the supply chain network. Due to the complexity and in order to get a satisfactory near-optimal solution with high speed, this research proposes a modeling framework based on two-phase methodology. This practical models focus on some significant aspects of supply chain network design, including the first phase on partners selection, the second phase on the relocation of existing facilities through capacity transfers to new locations, integration of inventory, transportation and supply decisions, the availability of a given budget for investments, and the generic structure of the supply chain network - while so far little attention has been received in the existing literatures. In the end, a computer simulation is introduced and it can prove the significance of the research.