Development of a hybrid metaheuristic for the efficient solution of strategic supply chain management problems: application to the energy sector

Abstract

Supply chain management (SCM) addresses the strategic, tactical, and operational decision making that optimizes the supply chain performance. The strategic level defines the supply chain configuration: the selection of suppliers, transportation routes, manufacturing facilities, production levels, technologies. The tactical level plans and schedules the supply chain to meet actual demand. The operational level executes plans. Tactical and operational level decision-making functions are distributed across the supply chain. To increase or optimize performance, supply-chain functions must be perfectly coordinated. But the cycles of the enterprise and the market make this difficult: raw material does not arrive on time, production facilities fail, workers are ill, customers change or cancel orders, therefore, causing deviations from the plan. In some cases, these situations may be dealt with locally. In other cases, the problem cannot be ”locally contained” and modifications across many functions are required. Consequently, the supply chain management system must coordinate the revision of plans or schedules. The ability to better understand an algorithm is important to focus on the following variables: tactical and operational levels of the supply chain so that the timely dissemination of information, accurate coordination of decisions, and management of actions among people and systems is achieved ultimately determines the efficient, coordinated achievement of enterprise goals