Model for integrating the supply chain of an appliance company: a value of information approach

A supply chain management model is presented in the context of a major household appliance manufacturer in Mexico. Specifically, it provides a capacitated, multistage, multiperiod, multicommodity, multifacility inventory planning model. The mixed-integer programming model deals with the efficient allocation of resources in the supply chain network under the premise that information is a valuable resource that also requires optimal allocation in order to enhance the flow of products and to minimize system-wide costs. The model employs the strategy of risk pooling or time postponement as a cost-reduction driver to account for the provision of safety stocks in the system. Numerical results are presented to demonstrate the feasibility of the application of the real-world, large-scale supply chain models.