||Combined production and distribution planning
Pedersen, Jesper (Department of Informatics and Mathematical Modeling, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
Michelsen, Aage U (Department of Management Engineering, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
||Stidsen, Thomas K.
||Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark
||In this project an evaluation of the potential of using optimisation in the supply network planning is considered. Existing literature in the elds of supply chain management and operational research is reviewed and a model consisting of general elements structured on the basis of the case is developed. The model has been linearised to ensure solvability if full scale problems need to be implemented. The model is set up as an acyclic digraph and considers production, distribution and storage costs, prices, transfer pricing, tax rates, exchange rates, import duties, export value added taxes, royalties and nancial costs. The constraints include production and storage capacities, as well as demand satisfaction and bills of materials.
The general model is adapted to the specific case data, and demonstrates positive gains in using combined production and distribution planning in an international supply network. The model can be used as a decision support tool, when testing di erent scenarios with changes in parameters. In the scenarios modelled based on the case, a profit improvement is achievable. As only a part of the product portfolio is implemented, the results of the optimisation are not directly scalable though.
The project illustrates the importance of implementing pro t maximisation and not cost minimisation in international networks, thereby enabling the model to include the associated fiscal flow.
The model is sufficiently general to be applied in other multi process production-distribution systems within an international intra-organisational network.
||Department of Informatics and Mathematical Modeling, Technical University of Denmark, DTU : DK-2800 Kgs. Lyngby, Denmark
||Combined Production and Distribution Planning; International Supply Chain Optimisation; Master Planning; Operational Research; Linear Programming; Multi-Facility Production Planning
Creation date: 2006-06-22
Update date: 2012-12-17