Multiproduct Supply Chain Network Design with Applications to Healthcare

 

ANNA NAGURNEY

ISENBERG SCHOOL OF MANAGEMENT, UNIVERSITY OF MASSA

 

In this paper, we develop a model for supply chain network design in the case of multiple products, with particular relevance to healthcare. The model allows for the determination of the optimal capacities of supply chain network activities, in the form of: manufacturing, storage, and distribution, as well as the multiple product flows, and identifies at what minimal total cost the demands for the products at the various points are achievable. The model may be utilized for the determination of the optimal allocation of resources for multiple vaccine production as well as the production of medicines, among other healthcare applications. The model is sufficiently general to handle supply chain network design, as well as redesign. A spectrum of numerical examples illustrates the flexibility and generality of the modeling and computational framework, which is based on the theory of variational inequalities.