A Decisional Modeling for Network Franchise and Supply Chain Management
Abstract
This article offers a modeling process that is aimed to evaluate and optimize logistics and financial flows in franchise networks. The proposed modeling consists in a combination of two modeling processes: the first reproduces the running logistic network through simulation and/or optimization; then data given by this model are used by a model that reproduces consequences on the mixed franchise network through a MILP (Mixed Integer Linear Programming) optimization based on the four Bradach management challenges: network growth, outlets uniformity, local responsiveness and system-wide adaptation. Applied to three networks types, the modeling process confirms that a combination of company-owned outlets and franchised outlets is the best way to manage the networks growth but also shows that the mix rate can be different between different type of networks.