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Integrated Production-Distribution Planning for Single-Period Inventory Products Using a Hybrid Genetic Algorithm  

Park, Yang-Byung (Mechanical and Industrial Systems Engineering, College of Advanced Technology, Kyung Hee University)
Publication Information
IE interfaces / v.16, no.3, 2003 , pp. 280-290 More about this Journal
Abstract
Many firms are trying to optimize their production and distribution functions separately, but possible savings by this approach may be limited. Nowadays, it is more important to analyze these two functions simultaneously by trading off the costs associated with the whole. In this paper, I treat a production and distribution planning problem for single-period inventory products comprised of a single production facility and multiple customers, with the aim of optimally coordinating important and interrelated decisions of production sequencing and vehicle routing. Then, I propose a hybrid genetic algorithm incorporating several local optimization techniques, HGAP, for integrated production-distribution planning. Computational results on test problems show that HGAP is effective and generates substantial cost savings over Hurter and Buer's decoupled planning approach in which vehicle routing is first developed and a production sequence is consequently derived. Especially, HGAP performs better on the problems where customers are dispersed with multi-item demand than on the problems where customers are divided into several zones based on single-item demand.
Keywords
supply chain management; integrated production and distribution planning; hybrid genetic algorithm; single-period inventory products;
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