A Two-Phase Approach for Supply Chain Network Design: A Real-World Case Study from Automotive Industry

Abstract

Effective design and management of Supply Chain Networks (SCN) support the production and delivery of products at low cost, high quality, high variety, and short lead times. In this study, a SCN is designed for an automotive company by integrating various approaches. The study has been carried out in two phases: The first phase involves selecting suppliers and distributors by using Data Envelopment Analysis (DEA) and integer-programming model. In the second phase, first the priority ranking of selected suppliers and distributors is determined using the Analytical Hierarchy Process (AHP) and then these priority rankings are integrated into the transportation models developed to identify the optimal routing decisions for all members of the supply chain.