Supply network configuration-A benchmarking problem

Managing supply networks is a highly relevant task that strongly influences the competitiveness of firms from various industries. Designing supply networks is a strategic process that considerably affects the structure of the whole network. In contrast, supply networks for new products are configured without major adaptations of the existing structure, but the network has to be configured before the new product is actually launched in the marketplace. Due to dynamics and uncertainties, the resulting planning problem is highly complex. However, formal models and solution approaches that support supply network configuration decisions for new products are scant. The paper at hand aims at stimulating related model-based research. To formulate mathematical models and solution procedures, a benchmarking problem is introduced which is derived from a case study of a cosmetics manufacturer. Tasks, objectives, and constraints of the problem are described in great detail and numerical values and ranges of all problem parameters are given. In addition, several directions for future research are suggested.