(479h) Simultaneous Optimization of the Design of the Product, Process Andsupply Chain for Formulated Products
In this work, an integrated framework and solution procedure are developed. The formulation considers the design of processes, products and supply chains simultaneously for formulated consumer products, in particular the case of powder detergent design. The production process can be considered as an extended pooling problem with restrictions that mainly affect the particle size or cake strength and that are related to the composition of the final product. Furthermore, the quality of the product is quantified with the cleaning performance and is introduced in the model as a further restriction. Three detergents are produced with different performance and prices.17 different ingredients classified into 7 groups are considered depending on the type of ingredients (surfactant, filler, enzymes, etc.). In addition, it is considered that the price of some of these ingredients can be set by multi-period contracts, with 4 different price policies depending on the amount used (linear, logarithm, constant elasticity and fixed) and others have an associated uncertainty. The design problem is multi-objective, seeking the balance between the economic benefit and the environmental impact of the whole process.It will be multi-period, considering 3 years of production. The size of the supply chain will be continental, resulting in a large MINLP problem that must be solved to global optimality.
A solution procedure inspired on Outer Approximation is developed to address the case study that considered the entire Europe with up to 29 actual suppliers corresponding to major chemical producers, major retailers across the continent and 68 feasible locations for the production facilities. Because of confidentiality issues, no real demand, raw material or product prices are used. The model solves the need to install three facilities. Only one of the three produces the three detergents, Czech Republic. Another one, in Barcelona, produces the second and third class detergents while the last one, Amiens, only produces the cheapest one to match the demand. Together with the allocation of the facilities, product composition and the suppliers of each one of the ingredients are selected for sustainable product design
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