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A framework for an integrated distribution system optimization model

Author

Listed:
  • 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)

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.

Suggested Citation

  • Nikhil A. Pujari & Jamison M. Day & Faizul Huq & Trevor S. Hale, 2008. "A framework for an integrated distribution system optimization model," Working Papers 1004, Groupe ESC Pau, Research Department, revised Jun 2008.
    • Handle: RePEc:pau:wpaper:1004
    as

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