Title: A framework for an integrated distribution system optimisation model

Authors: Trevor S. Hale, Jamison M. Day, Faizul Huq, Nikhil A. Pujari

Addresses: Department of Management, Marketing, and Business Administration, University of Houston – Downtown, Houston, Texas 77002, USA. ' Department of Decision and Information Sciences, University of Houston, Houston, TX 77004, USA. ' Department of Management Systems, Ohio University, Athens, Ohio 45701, USA. ' Department of Industrial and Manufacturing Systems Engineering, Ohio University, Athens, OH 45701, USA

Abstract: This paper presents a framework for an integrated optimisation model of supply chain functions in a multi-plant, 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 maximisation 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 modelling hierarchy. This study was motivated by a perceived gap in the literature on supply chain modelling methods and supply chain frameworks.

Keywords: capacitated location; distribution systems design; facilities location; optimisation; supply chain management; SCM; logistics; production; supply chain design; supply chain modelling.

DOI: 10.1504/IJLSM.2008.017598

International Journal of Logistics Systems and Management, 2008 Vol.4 No.5, pp.506 - 522

Published online: 20 Mar 2008 *

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