Abstract
Optimization is widely applicable solution for most engineering problems including production, transportation, and distribution. Furthermore, in a global supply chain, products transferred needs to be optimized in either cost efficient or required time-window manner. Temperature sensitive and perishable products (TSPP) is one type of commodities that need special consideration during shipment, defined as cold freight distribution. As customer demand become more varied and competition become fiercer, freight transportation needs to be more flexible thus still managed to be efficient. This flexibility is contradictive to the optimal cost solution, which made most of shipments is either not cost effective or dealing with high damage rate due to long shipment. This research proposed a mathematical model to integrate production, transportation, and inventory aspects for TSPP in global supply chain (GSC). The mathematical model is aim to minimize all costs functions and increase flexibility. This research is an application of MINLP model to solve a study case of frozen products in multiple vendor and multiple buyer problem.