Mixed-integer programming formulations for optimal reconfiguration of supply chains

Abstract

Supply chains are interconnected networks of processes and operations producing and delivering high-value products. These chains are increasingly subjected to structural changes from the energy transition and other external factors. To address this, this work develops mixed-integer programming formulations to identify optimal reconfigurations that preserve industrial operations and profitability. We propose products and spatial neighborhoods to restrict the feasible search space and enable fast heuristic solutions. Furthermore, this restriction combines structural and product-based information, thus allowing to explore and define multiple reconfiguration scenarios. We demonstrate the approach using an agricultural waste case study, showing its ability to quickly produce good quality solutions.