A model for the strategic design of Distribution Networks

The paper addresses the optimal design of the last branch of the supply chain, i.e., the Distribution Network (DN), starting from manufacturers till the retailers. Considering a distributed system composed of different stages connected by material links labeled with suitable performance indices, a procedure employing digraph modeling and mixed integer linear programming is presented to select the (sub)optimal DN configuration. The optimization model is applied under structural constraints to a case study describing the distribution chain of a large enterprise of southern Italy producing consumer goods. The problem solution provides different structures allowing the improvement of the DN flexibility and performance.