Joint Optimization of Physical and Information Flows in Supply Chains

Abstract

Supply chain units are connected by both physical and in- formation ows. Electronic services are used to perform a large part of activities in modern supply chains. The traditional supply chain cong- uration models pay the main attention to optimization of the physical ows. However, it is equally important to ensure that the physical units have appropriate information processing and logistics capabilities. There- fore, a model for joint conguration of the physical and information ows in e-retailing supply chains is elaborated in this paper. The model simul- taneously identies appropriate suppliers, selects the third party logistics service provider and selects appropriate electronic information process- ing services. The typical services used in global e-retailing are identied. The services are characterized by their functionality and quality of ser- vice measurements. The preliminary experimental studies demonstrate interdependencies between the physical and information ows