Proposing an optimization model by simultaneous consideration of the interactions between modules and the relationships among suppliers, With a case study on the electro-optical camera

To address problems in product development, decisions about product architecture and supply chain, and specially supplier network, are usually sequenced. This study aims to propose a model considering the product architecture and the supplier network at the same time in the early stages of product design for two optimization goals: i) to increase the weight of the supplier cooperation network; and to minimize the total cost of transactions and the proposed modules’ cost. The relationship between suppliers and within and between modules has been also considered in the early stages of design. The cost of interactions has been estimated, using clustering to obtain the Design Structure Matrix (DSM). The proposed solution was examined in an artificial network and on the electro-optical camera. This research aims to minimize interaction costs and maximize suppliers’ collaboration networks.

In the first step, a DSM was developed for Product Architecture. Then the mathematical optimization MO_MINLP with a two objective model was developed. The proposed model was solved by GAMS software using Weighted Sum, LP metric, and augmented epsilon constraint methods. Consequently, the results were compared and a sensitivity analysis was performed.

The model aimed to minimize costs, including the total cost of internal and external transactions. The module proposed cost and maximized the weight of the supplier cooperation network. To evaluate the model, an artificial numerical problem and a real problem on the electrooptical camera were studied. The experimental results confirmed that the proposed model can effectively design supplier networks and assign modules to the best suppliers. The analysis of the results indicated that considering the transactions cost and supplier cooperation network simultaneously in a bi-objective model more effectively optimizes and designs the supplier network. The model’s solution results implied reduced redesign and rework with minimum cost. The results also highlighted: i) Simultaneous consideration of product architecture and supplier network in the form of a team and network of suppliers. ii) Nonlinear bi-objective model: to increase the weight of the supplier cooperation network; and to minimize the total cost of internal and external interactions for the realization of product modules for the main manufacturer and the module proposed cost by the supplier, taking into account the skills and capacity and supporting suppliers. iii) Considering the relationship between suppliers and within and between modules iv) Assisting in the selection of the right supplier in the early stages of design v) Estimation of the cost of interactions, using DSM clustering. Research limitations/implications: In the case study, the most critical limitation in collecting necessary information and developing a computational model was the lack of historical data for product architecture and parameters. Practical implications: Applying the proposed approach reduced the cost of product design and its associated operations. Practitioners can use this approach in selecting the best supplier and modules. The proposed approach reduced rework and redesign and supplier network costs in early product design processes. Social implications: Implementation of the proposed approach decreased social costs by reduced rework and redesign and supplier network costs in early product design processes. Such an achievement was also related to the social network of suppliers.

The proposed mathematical model innovatively integrated product architecture and supplier network using MO_MINLP and used the results to optimize a typical industrial product.