The Joint Optimization Model of Location-inventory in Four-level Supply Chain

Only consider facility location or inventory management can only make the supply chain reach the local optimum, supply chains will face greater risk. Including multiple suppliers, multiple manufacturers, multiple distribution centers, multiple customers of the four-level supply chain, the choice of supplier will affect the profit and other decisions of the supply chain. Therefore, this paper studies the joint location-inventory model of multi-product of four-level supply chain aiming at maximizing the overall benefit of the supply chain. An example is given to verify the model, commercial software IBM ILOG COLEX was used to solve the example, the sensitivity of the example was analyzed. The results show that the location and distribution variables of the model are stable to the changes of each parameter, this model can provide scientific decision-making basis for enterprises in actual operation.