Multistage supply-chain network design

The logistics problem in the process of satifying consumer demand with the limited supply has many elements to it, e.g. facility location, optimal distribution etc. Facility location and supply network optimization do not, in many cases, capture the true essence of real life logistics problem. Many companies deal with multi-stage logistics problem where optimizing the production quantity, distribution network and supply network is required. Here, in this project we are considering a multi-stage logistics problem which involves optimization of production quatity, distribution network and supply network. To make this problem closer to the real life situation we also have capacity constraints on supply quatity, production quantity and number of facilities (production plants and distribution centers) to be chosen from the given set of possible facility locations. Hence, this problem can viewed as a combination of multiple choice Knapsack and Capacited location-allocation problem.