A planning and routing model for the integrated supply chain management

The supply of complex products often involves the assembly of other products, components or sub-assemblies. Furthermore, these sub-assemblies may be produced by different suppliers. As a result, the specification of the assembly process for the final product contains relationship between multiple supply chain components, including business entities, manufacturing processes, products, and parts. This specification, involving the coordination and arrangement of components production to support final product assembly, is referred to as a supply chain planning and routing. An optimization model is proposed to deals with the routing problem considering constraints on the suppliers production capacity and minimizing the transportation costs.