Case Article—Integrating Network Design Models for a Global Supply Network

Published Online:https://doi.org/10.1287/ited.2019.0237ca

In typical operations research courses, optimization problems, such as transportation and assignment problems, are frequently discussed and taught as stand-alone problems. An integrated approach may prove to be necessary in order to enable students to have a holistic understanding of a complex problem (e.g., a project). In this paper, a global supply network design problem is presented where the case company can source from multiple “suppliers” using multiple modes of transport (including the use of containers with different capacities), allowing lateral supply between warehouses, etc. As more factors are considered, the problem becomes much more complex than any isolated problem in a typical course. The case was tested in an undergraduate course in Australia, and students found this case challenging but at the same time rewarding once solved.

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