Research Article

Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning

Volume: 19 Number: 1 May 1, 2019
TR EN

Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning

Abstract

This study considers a supply chain management problem in which a plant produces and distributes a product to multiple retailers using a homogeneous fleet of vehicles over a finite time horizon. The aim is to decide on the production quantities at the plant, delivery quantities to retailers, the set of vehicles to use and the assignment of retailers to vehicles in each period such that the system-wide costs are minimized. A mixed integer linear programming formulation of the problem outperforming the existing ones in the literature is proposed. This study also compares integrated production and distribution planning with the sequential planning in which retailers place their own orders and the plant makes its plan based on these orders, and assesses the value of integrated planning. The computational results indicate that average cost savings of 8.9% and maximum cost savings of 28% can be obtained with the integrated planning over the sequential planning.

Keywords

References

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  3. Adulyasak, Y., Cordeau, J.-F., Jans, R. (2014). “Formulations and branch-and-cut algorithms for multivehicle production and inventory routing problems”. INFORMS Journal on Computing, 26: 103–120.
  4. Adulyasak, Y., Cordeau, J.-F., Jans, R. (2015a). “The production routing problem: a review of formulations and solution algorithms”. Computers & Operations Research, 55: 141–152.
  5. Adulyasak, Y., Cordeau, J.-F., Jans, R. (2015b). “Benders decomposition for production routing under demand uncertainty”. Operations Research, 63: 851–867.
  6. Archetti, C., Bertazzi, L., Paletta, G., Speranza, M.G. (2011). “Analysis of maximum level policy in a production-distribution system”. Computers & Operations Research, 38: 1731–1746.
  7. Barany, I., Van Roy T.J., Wolsey, L.A. (1984). “Uncapacitated lot sizing: the convex hull of solutions”. Mathematical Programming Studies, 22: 32–43.
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Details

Primary Language

English

Subjects

Economics

Journal Section

Research Article

Publication Date

May 1, 2019

Submission Date

September 4, 2018

Acceptance Date

February 19, 2019

Published in Issue

Year 2019 Volume: 19 Number: 1

APA
Solyalı, O. (2019). Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning. Akdeniz İİBF Dergisi, 19(1), 223-240. https://doi.org/10.25294/auiibfd.559408
AMA
1.Solyalı O. Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning. Akdeniz İİBF Dergisi. 2019;19(1):223-240. doi:10.25294/auiibfd.559408
Chicago
Solyalı, Oğuz. 2019. “Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning”. Akdeniz İİBF Dergisi 19 (1): 223-40. https://doi.org/10.25294/auiibfd.559408.
EndNote
Solyalı O (May 1, 2019) Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning. Akdeniz İİBF Dergisi 19 1 223–240.
IEEE
[1]O. Solyalı, “Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning”, Akdeniz İİBF Dergisi, vol. 19, no. 1, pp. 223–240, May 2019, doi: 10.25294/auiibfd.559408.
ISNAD
Solyalı, Oğuz. “Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning”. Akdeniz İİBF Dergisi 19/1 (May 1, 2019): 223-240. https://doi.org/10.25294/auiibfd.559408.
JAMA
1.Solyalı O. Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning. Akdeniz İİBF Dergisi. 2019;19:223–240.
MLA
Solyalı, Oğuz. “Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning”. Akdeniz İİBF Dergisi, vol. 19, no. 1, May 2019, pp. 223-40, doi:10.25294/auiibfd.559408.
Vancouver
1.Oğuz Solyalı. Integrated Production and Distribution Planning: An Improved Formulation and the Value of Integrated Planning. Akdeniz İİBF Dergisi. 2019 May 1;19(1):223-40. doi:10.25294/auiibfd.559408