A framework for an integrated distribution system optimization model

Nikhil A. Pujari (), Jamison M. Day (), Faizul Huq () and Trevor S. Hale ()
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Nikhil A. Pujari: Department of Industrial and Manufacturing Systems Engineering, Ohio University
Jamison M. Day: Department of Decision and Information Sciences, University of Houston
Faizul Huq: Groupe ESC Pau and Department of Management Systems, Ohio University
Trevor S. Hale: Department of Management, Marketing, and Business Administration, University of Houston

No 1004, Working Papers from Groupe ESC Pau, Research Department

Abstract: This paper presents a framework for an integrated optimization model of supply chain functions in a multiplant, multi-product, multi-customer supply chain with deterministic demands. A mixed-binary integer programming model is proposed to integrate the capacitated location, production, and distribution (CLPD) functions within a supply chain. The integrated CLPD problem is formulated as a profit maximization model with capacity and demand constraints. The result is a framework from which to design entire supply chains from suppliers to customers. The proposed model is solved using OPL Studio 3.7 and solutions for four variations of the CLPD problem are presented to demonstrate the efficacy of the integrated approach. The main contribution of this research is a multi-echelon, supply chain design and modeling hierarchy. This study was motivated by a perceived gap in the literature on supply chain modeling methods and supply chain frameworks.

Keywords: Distribution systems design; capacitated location; facility location. (search for similar items in EconPapers)
Pages: 16 pages
Date: 2008-06, Revised 2008-06
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