Page 300 - Sustainability in the Process Industry Integration and Optimization

I n d u s t r i a l A p p l i c a t i o n s a n d Ca s e S t u d i e s 277

further by considering several other issues, such as fouling, pressure
drop, and variation in the heat demand.

11.7 Optimal Design of a Supply Chain
In the global market, optimal management control of a company is
necessary for survival. Such control involves a series of effective
strategic decisions that are concerned with various aspects of the
supply chain—for example, decisions regarding the products
themselves as well as the location of production facilities and
distribution centers. When the subject is the development or
operation of highly complex business processes (e.g., supply
chains, value chains), computer-aided decisions are preferred.
A conventional approach for systematically evaluating decision
alternatives is Mathematical Programming, although a daily
management problem is usually not resolved via MPR methods.
Even when the MPR can be constructed for the problem, it is still
difficult to verify whether the mathematical formulation of relevant
decision alternatives is sufficiently accurate and complete to
identify the optimal solution. When the mathematical model is not
generated systematically, the model’s chances of embodying the
optimal solution are very low.
This case study involves determining the optimal design of a
supply chain. Here, the purpose of the supply chain is to meet a given
volume demand for commodity C at location L1. Three options are
considered: produce commodity C at location L1; produce commodity
C at location L2 and then transport it to location L1; or some combination
of these. Production requires the availability of part A and part B at
the same location. Part A is available at location L3 and, to a limited
extent, at location L4; it can be transported to location L1 or to
location L2. Part B is available at location L2 and can be transported to
location L1. The list of potential activities is given in Table 11.7.

ID Activity Location Precondition Effect
P Production L1 A and B at L1 C at L1
L1
P Production L2 A and B at L2 C at L2
L2
T Transportation From L3 to L1 A at L3 A at L1
AL3L1
T Transportation From L3 to L2 A at L3 A at L2
AL3L2
T Transportation From L4 to L1 A at L4 A at L1
AL4L1
T Transportation From L4 to L2 A at L4 A at L2
AL4L2
T Transportation From L2 to L1 B at L2 B at L1
BL2L1
T Transportation From L2 to L1 C at L2 C at L1
CL2L1
TABLE 11.7 Potential Activities in the Supply Chain Case Study