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Two-level method for scheduling product flow through supply networks

A hierarchical method for supporting supply network management is described. The links in this network include both component manufacturers and recipients of semi-finished products – manufacturers of complex goods. For a network configured in this way, a two-level method for building delivery schedules of components (semi-finished products) to manufacturers of complex goods has been developed. At the first level of the method, preliminary production schedules are built for plants manufacturing complex goods. Knowledge of the demand for specific components is used at the second level of the method. Here, a schedule for the delivery of components to manufacturers of complex goods is determined. Product flow costs are minimized – optimization takes place on the scale of the entire supply network. Linear mathematical models of integer programming tasks were built for the method.1. INTRODUCTION
The term “supply chain” is increasingly being replaced by the concept of “supply network”. This is due to the existing relationships between enterprises, where flows usually do not have a linear character. These flows take place between many dependent producers and recipients who belong to different supply chains [1].
Supply networks include not only the flows of goods and the information accompanying them, but also financial streams. The concept of a supply network is obviously a broader concept than the term supply chain. Supply chains, characterized by central coordination of flows, constitute a special case of supply networks [11].
Supply networks can have various hierarchical structures and types of ties between their participants, called links according to network theory. H.Ch. Pohl [6] distinguishes the following types of production networks:
− strategic integrated network – a stable system managed by a centrally located manufacturing or trading enterprise;
− virtual enterprise – it uses IT techniques to carry out incidental transactions;
− integrated operational network – uses an integrated information system, allowing for the use of free production capacities and logistics services of partners – individual network links;
− regional integrated network – based on the cyclical cooperation of many small companies located in a given region, depending on the types of orders appearing and their size. (…)

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Source: Logistyka Magazine

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