A Mathematical Programming Approach to Supply Chain Network Design considering Shareholder Value Creation

Table 2

Notations.

Indices
	Resources of production indexed by
	Products indexed by
	Locations of plant, indexed by
	Locations of DC, indexed by
	Locations of CZ, indexed by
	Locations of WH, indexed by
	Planning periods indexed by s and
Parameters
	Plant market price during the time , with and
	Warehouse market price during the time , with and
	Distribution center market price at time period , with and
	Cost for establishing a plant at location during the time period , with and
	Cost for establishing a WH at location during the time , with and
	Cost for establishing a DC at location at time period , with and
	Cost for closing a plant at location during the time period , with and
	Cost for closing a WH at location during the time , with and
	Cost for closing a DC at location during the time , with and
	Fixed production cost for product at plant at time period , with , , and
	Unit production cost for product at plant at time period , with , , and
	Fixed transportation cost of product from plant to WH at time period , with , , , and
	Unit transportation cost of product from plant to WH at time period , with , , , and
	Fixed transportation cost of product from WH to D.C at time period , with , , , and
	Unit transportation cost of product from W.H to D.C at time period , with , , , and
	Fixed transportation cost of product from DC to CZ at time period , with , , , and
	Unit transportation cost of product from D.C to CZ at time period , with , , , and
	Unit inventory cost of product at plant at time period , with and
	Unit inventory cost of product at WH at time period , with and
	Unit inventory cost of product at DC at time period , with and
	Maximum capacity of DC , with
	Minimum capacity of DC , with
	Maximum inventory level of product being held at plant at the end of time period , with and
	Demand of product from customer zone at time period , with , , and
	Maximum production capacity of product at plant with end
	Minimum production capacity of product at plant with end
	Unit selling price of product at CZ at time period , with , , and
	Maximum limit of products that can be transferred from plant to WH , with end
	Maximum limit of products that can be transferred from WH to D.C , with end
	Maximum limit of products that can be transferred from DC to C.Z , with end
	Available quantity of resource at plant , with and
	Maximum capacity of WH , with
	Minimum capacity of WH , with
	Safety stock of product at DC , during the time with , , and
	Safety stock of product at WH , during the time with , and
	Cash ratio lower bound during the time , with
	Current ratio lower bound during the time , with
	Cash coverage ratio lower bound during the time , with
	Assets turnover ratio lower bound during the time , with
	New capital entries upper bound during the time period , with
	Long-term debt ratio upper bound during the time period , with
	Total debt ratio upper bound during the time , with
	Return on equity ratio lower bound during the time period , with
	Profit margin ratio lower bound during the time period , with
	Return on assets ratio lower bound during the time period , with
	Lower bound for quick ratio during the time period , with
	Accumulated depreciation rate of a facility opened at time period and closed during the time , with and
	Long-term interest rate during the time period , with
	Tax rate at the time period , with
	Rate of capital cost during the time , with
	Depreciation rate of a facility at the end of time period , with and
	Coefficient relating resource utilization rate of to produce product in plant , with , , and
	Coefficient relating loans during the time , with
	Coefficient relating payables outstanding at time period , with
	Coefficient relating revenues outstanding at time period , with
Decisions and auxiliary variables
	Inventory level of product being held at plant at time period , with , and
	Inventory level of product being held at WH at time period , with and
	Inventory level of product being held at DC at time period , with and
	Product quantity produced at plant at time period , with , , and
	Product quantity transferred from plant to WH in time period , with , , , and
	Product quantity transferred from WH to DC in time period , with , , , and
	Quantity of product transferred from DC to C.Z during time period , with and
	and and
	with and and
	with and and
	with and and
	with and and
	New capital entries from shareholders during the time period , with
	Repaid amount to the bank during the time period , with
	Current assets during the time period , with
	Bank debts during the time period , with
	Depreciation value at time period , with
	Cost of sales at time period , with
	Cash during the time period , with
	Investment of fixed assets during the time period , with
	Divestment of fixed assets during the time period , with
	Interest paid(interest expense) during the time period , with
	Cost of holding inventory during the time period , with
	Long-term debt during the time period , with
	Inventory value at time period , with
	Nonoperating income during the time period , with
	Production cost during the time period , with
	Net fixed assets during the time period , with
	Revenues from sales during the time period , with
	Transportation cost during the time period , with