An integrated production, inventory, warehouse location and distribution model
DOI:
https://doi.org/10.12660/joscmv9n2p17-27Keywords:
Supply chain management, integrated models, logistics, transshipment, warehouse location.Abstract
This paper proposes an integrated production and distribution planning optimization model for multiple manufacturing locations, producing multiple products with deterministic demand at multiple locations. There are multiple modes of transport from plants to demand locations and warehouses. This study presents a model which allows decision makers to optimize plant production, transport and warehouse location simultaneously to fulfill the demands at customer locations within a multi-plant, multi-product, and multi-route supply chain system when the locations of the plants are already fixed. The proposed model is solved for sample problems and tested using real data from a cement manufacturing company in India. An analysis of the results suggests that this model can be used for various strategic and tactical production and planning decisions.
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