Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
권호 표지

Production/Distribution Scheduling for Integrated Supply Chain Management

통합 공급체인관리를 위한 생산/배송 스케줄링

  • Park, Yang-Byung (School of Mechanical and Industrial Systems Engineering, Kyung Hee University)
  • 박양병 (경희대학교 기계.산업시스템공학부)
  • Published : 2002.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

Many firms are trying to optimize their production and distribution systems separately, but possible profit increase by this approach is limited. Nowadays, it is more important to analyze these two systems simultaneously for the integrated supply chain management. This paper is a computational study to investigate the effectiveness of integrating production and distribution scheduling. We are interested in a multi-plant, multi-retailer, multi-product and multi-period industrial problem where the objective in solving production and distribution scheduling problem is to maximize the total net profit. Computational results on test problems of various sizes using the heuristic we developed show a substantial advantage of the integrated scheduling approach over the decoupled scheduling process. Sensitivity analysis on the parameter values indicates that, under the right conditions, the effectiveness of integrating production and distribution functions can be extremely high.

Keywords

References

  1. Chandra, P. and Fisher, M. L. (1994), Coordination of Production and Distribution Planning, European Journal of Operational Research, 72, 503-517
  2. Chen, M. and Wang, W. (1997), A Linear Programming Model for Integrated Steel Production and Distribution Planning, International Journal of Operations & Production Management, 17(6), 592-610 https://doi.org/10.1108/01443579710167276
  3. Dhaenens-Flipo, C. (2000), Spatial Decomposition for a Multi-Facility Production and Distribution Problem, International Journal of Production Economics, 64, 177-186
  4. Dhaenens-Flipo, C. and Finke, G. (2001), An Integrated Model for Industrial Production-Distribution Problem, IIE Transactions, 33, 705-715
  5. Erenguc, S. S., Simpson, N. C. and Vakharia, A. J. (2001), Integrated Production/Distribution Planning in Supply Chains: An Invited Review, European Journal of Operational Research, 115, 219-236
  6. Fumero, F. and Vercellis, C. (1999), Synchronized Development of Production, Inventory, and Distribution Schedules, Transportation Science, 33(3), 330-340 https://doi.org/10.1287/trsc.33.3.330
  7. ILOG CPLEX 7.5 User's Manual (2001), ILOG, Inc., November, France
  8. Jayaraman, V. and Pirkul, H. (2001), Planning and Coordination of Production and Distribution Facilities for Multiple Commodities, European Journal of Operational Research, 133, 394-408
  9. Lee, Y. H. and Kim, S. H. (2000), Optimal Production Distribution Planning in Supply Chain Management Using a Hybrid Simulation-Analytic Approach, Proceedings of the 2000 Winter Simulation Conference, 1252-1259
  10. Mabert, V. A. and Venkataramanan (1998), Special Research. Focus on Supply Chain Linkages: Challenges for Design and Management in the 21st Century, Decision Sciences, 29(3), 537-552 https://doi.org/10.1111/j.1540-5915.1998.tb01353.x
  11. Martin, C. H., Dent, D. C. and Eckhart, J. C. (1993), Integrated Production, Distribution, Inventory Planning at Libbey-Owens-Ford, Interfaces, 23, 68-78
  12. Sarmiento, A. M. and Nagi, R. (1999), A Review of Integrated Analysis of Production-Distribution Systems, IIE Transactions, 31, 1061-1074
  13. Shapiro, J. F. (1999), Chap. 23: Bottom-Up vs. Top-Down Approaches to Supply Chain Modeling, Quantitative Models for Supply Chain Management, Tayur, S., Geneshan, R. and Magazine, M.(eds), Kluwer Academic Publishers, Boston
  14. Thomas, D. J. and Griffin, P. M. (1996), Coordinated Supply Chain Management, European Journal of Operational Research, 94, 1-15
  15. Youssef, M. A. and Mahmoud, M. M. (1996), An Iterative Procedure for Solving the Uncapacitated Production Distribution Problem under Concave Cost Function, International Journal of Operations & Production Management, 16(3), 18-27 https://doi.org/10.1108/01443579610110468