Skip to main content
Log in

Synchronized production–distribution planning in a single-plant multi-destination network

  • Theoretical Paper
  • Published:
Journal of the Operational Research Society

Abstract

This paper examines the flow synchronization problem between a manufacturing location and multiple destinations. Multiple products can be shipped from the manufacturing location to different locations via multiple transportation modes. These transportation modes may have different transportation lead times. The transportation costs structure of the different transportation modes offer economies of scale and can be represented by general piecewise linear functions. The production system at the manufacturing location is a serial process with a bottleneck stage. At the bottleneck stage, a predetermined production sequence must be maintained as is the case in some process-based industries. We propose a tight mixed integer programming model for integrated planning of production and distribution in the network. We show that by adding simple valid inequalities and special 0-1 variables, major computational improvements can be achieved when solving this problem with commercial solvers such as Cplex. We also propose a sequential solution approach, based on the independent, but synchronized, solutions of the production and distribution sub-problems. Finally, the solution methods proposed are tested experimentally for realistic problems and the advantage of integrated planning over independent but synchronized planning is assessed.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2
Figure 3
Figure 4
Figure 5

Similar content being viewed by others

References

  • Anily S (1994). The general multi-retailer EOQ problem with vehicle routing costs. Eur J Opl Res 79: 451–473.

    Article  Google Scholar 

  • Anily S and Federgruen A (1990). One warehouse multiple retailers systems with vehicle routing costs. Mngt Sci 36: 92–114.

    Article  Google Scholar 

  • Anily S and Federgruen A (1993). Two-echelon distribution systems with vehicle routing costs and central inventories. Opns Res 41: 37–47.

    Article  Google Scholar 

  • Barany I, Van Roy TJ and Wolsey LA (1984). Strong formulations for multi-items capacitated lotsizing. Mngt Sci 30: 1255–1261.

    Article  Google Scholar 

  • Beale EML and Tomlin JA (1970). Special facilities in general mathematical programming system for non-convex problems using ordered sets of variables. In: Lawrence J. (Ed). Proceedings of the Fifth International Conference on Operational Research. Tavistock Publications: London, pp. 447–454.

    Google Scholar 

  • Chan LMA, Muriel A, Shen ZJ, Simchi-Levi D and Teo C (2002). Effective zero-inventory-ordering policies for the single-warehouse multiretailer problem with piecewise linear cost structures. Mngt Sci 48: 1446–1460.

    Article  Google Scholar 

  • Chandra P and Fisher ML (1994). Coordination of production and distribution planning. J Opl Res Soc 72: 503–517.

    Article  Google Scholar 

  • Diaby M and Martel A (1993). Dynamic lot sizing for multi-echelon distribution systems with purchasing and transportation price discounts. Opns Res 41: 48–59.

    Article  Google Scholar 

  • Gallego G and Simchi-Levi D (1990). On the effectiveness of direct shipping strategy for the one warehouse multi-retailer R-systems. Mngt Sci 36: 240–243.

    Article  Google Scholar 

  • Herer Y and Roundy R (1997). Heuristics for a one-warehouse multiretailer distribution problem with performance bounds. Opns Res 45: 102–115.

    Article  Google Scholar 

  • Orgyczak W (1996). A note on modeling multiple choice requirements for simple mixed integer programming solvers. Comput Opns Res 23: 199–205.

    Article  Google Scholar 

  • Rizk N, Martel A and Ramudhin A (2006a). A Lagrangean relaxation algorithm for multi-item lot sizing problems with joint piecewise linear resource costs. Int J Prod Econom 106: 344–357.

    Article  Google Scholar 

  • Rizk N, Martel A and D'Amours S (2006b). Multi-item dynamic production distribution planning in process industries with divergent finishing stages. Comput Opns Res 33: 3600–3623.

    Article  Google Scholar 

  • Salmon M (eds) (1991). Multi-stage Production Planning and Inventory Control, Lectures Notes in Economics and Mathematical Systems, vol. 355. Springer-Verlag: Berlin, pp 92–108.

  • Viswanathan S and Mathur K (1997). Integrating routing and inventory decisions in one-warehouse multiretailer multiproduct distribution systems. Mngt Sci 43: 294–312.

    Article  Google Scholar 

Download references

Acknowledgements

This project would not have been possible without the collaboration of FOR@C's partners especially of NSERC and Domtar.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to N Rizk.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Rizk, N., Martel, A. & D'Amours, S. Synchronized production–distribution planning in a single-plant multi-destination network. J Oper Res Soc 59, 90–104 (2008). https://doi.org/10.1057/palgrave.jors.2602316

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/palgrave.jors.2602316

Keywords

Navigation