Supply Chain Configuration Modeling for Multi-product Multi-echelon

The cost of the new product development (NPD) process takes a significant amount of the total cost. Manufacturers need to implement the right strategy to avoid losses due to the failure. The integration of the selection of products, processes, and supply chain elements can be one of the means. In this research, the model of product, process, and supply chain configuration was built; consisting of three echelons of component suppliers, manufacturers, and distributors. This model resulted in a mixed integer linear programming model that can be solved using the branch and bound method. The model can help the manufacturers in deciding when to start the NPD process and the production activities. This model will also help the companies in determining the product type to be produced, the quantity of production, the selected supply chain element and the distribution allocation so that the profits of the manufacturers will be maximized. The model is tested using a numerical example and is implemented using data from a creative industry engaged in fashion.