Coordination of production and distribution planning
TL;DR: Two approaches to managing this operation are compared, one in which the production scheduling and vehicle routing problems are solved separately, and another in which they are coordinated within a single model.
About: This article is published in European Journal of Operational Research.The article was published on 1994-02-10. It has received 545 citations till now. The article focuses on the topics: Time horizon & Production control.
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TL;DR: In this paper, the authors review the literature addressing coordinated planning between two or more stages of the supply chain, placing particular emphasis on models that would lend themselves to a total supply chain model.
1,319 citations
TL;DR: In this article, the authors present a review of the state-of-the-art in continuous location models and network location models, mixed-integer programming models, and applications for distribution system design.
935 citations
TL;DR: A systematic literature review on supply chain coordination is presented in this paper, which reports and reviews various perspectives on SC coordination issues, understand and appreciate various mechanisms available for coordination and identify the gaps existing in the literature.
806 citations
TL;DR: This paper review the main contributions in the field of production and distribution planning for agri-foods based on agricultural crops and focuses particularly on those models that have been successfully implemented.
784 citations
Cites background from "Coordination of production and dist..."
...For instance, Chandra and Fisher (1994) report savings of up to 20% when integrated decision models are used....
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...Although these tasks have traditionally been modeled independently, there is a consensus in the supply chain literature that two or more of these processes should be modeled together for improving the overall supply chain performance (Chandra and Fisher, 1994)....
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TL;DR: In this paper, the authors developed a research framework that improves understanding of supply chain management and stimulates and facilitates researchers to undertake both theoretical and empirical investigat... Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM.
Abstract: Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigat...
666 citations
Cites background from "Coordination of production and dist..."
...…production–inventory–distribution coordination have also been widely studied, though many problems in these areas, formulated as dynamic programming, integer programming or non-linear programming, are extremely difficult to solve (e.g. Ernst and Pyke 1993, Chandra and Fisher 1994, Lee et al. 1997)....
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References
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TL;DR: This paper discusses a highly effective heuristic procedure for generating optimum and near-optimum solutions for the symmetric traveling-salesman problem based on a general approach to heuristics that is believed to have wide applicability in combinatorial optimization problems.
Abstract: This paper discusses a highly effective heuristic procedure for generating optimum and near-optimum solutions for the symmetric traveling-salesman problem. The procedure is based on a general approach to heuristics that is believed to have wide applicability in combinatorial optimization problems. The procedure produces optimum solutions for all problems tested, "classical" problems appearing in the literature, as well as randomly generated test problems, up to 110 cities. Run times grow approximately as n2; in absolute terms, a typical 100-city problem requires less than 25 seconds for one case GE635, and about three minutes to obtain the optimum with above 95 per cent confidence.
3,761 citations
TL;DR: Disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full N periods and desire a minimum total cost inventory management scheme which satisfies known demand in every period.
Abstract: (This article originally appeared in Management Science, October 1958, Volume 5, Number 1, pp. 89-96, published by The Institute of Management Sciences.)
A forward algorithm for a solution to the following dynamic version of the economic lot size model is given: allowing the possibility of demands for a single item, inventory holding charges, and setup costs to vary over N periods, we desire a minimum total cost inventory management scheme which satisfies known demand in every period. Disjoint planning horizons are shown to be possible which eliminate the necessity of having data for the full N periods.
2,114 citations
TL;DR: The sweep algorithm generally produces results that are significantly better than those produced by Gaskell's savings approach and are generally slightly better than Christofides and Eilon's results; however, the sweep algorithm is not as computationally efficient as Gaskell’s and is slightly less so than Christ ofides andEilon's.
Abstract: This paper introduces and illustrates an efficient algorithm, called the sweep algorithm, for solving medium-as well as large-scale vehicle-dispatch problems with load and distance constraints for each vehicle. The locations that are used to make up each route are determined according to the polar-coordinate angle for each location. An iterative procedure is then used to improve the total distance traveled over all routes. The algorithm has the feature that the amount of computation required increases linearly with the number of locations if the average number of locations for each route remains relatively constant. For example, if the average number of locations per route is 7.5, the algorithm takes approximately 75 seconds to solve a 75-location problem on an IBM 360/67 and approximately 115 seconds to solve a 100-location problem. In contrast, the time to solve a problem with a fixed number of locations increases quadratically with the average number of locations per route. The sweep algorithm generally produces results that are significantly better than those produced by Gaskell's savings approach and are generally slightly better than Christofides and Eilon's results; however, the sweep algorithm is not as computationally efficient as Gaskell's and is slightly less so than Christofides and Eilon's.
1,168 citations
TL;DR: This paper presents a comprehensive model framework for linking decisions and performance throughout the material-production-distribution supply chain to support analysis of alternative manufacturing material/service strategies.
Abstract: This paper presents a comprehensive model framework for linking decisions and performance throughout the material-production-distribution supply chain. The purpose of the model is to support analysis of alternative manufacturing material/service strategies. A series of linked, approximate submodels and an heuristic optimization procedure are introduced. A prototype software implementation is also discussed.
659 citations
"Coordination of production and dist..." refers background in this paper
...Keywords: Production and distribution; Coordination; Planning, Operations management...
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...Pyke (1987) and Cohen and Lee (1988) studied integrated production/distribution systems under stochastic demand....
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TL;DR: For Air Products and Chemicals, Inc., inventory management of industrial gases at customer locations is integrated with vehicle scheduling and dispatching, and the system has been saving between 6% to 10% of operating costs.
Abstract: For Air Products and Chemicals, Inc., inventory management of industrial gases at customer locations is integrated with vehicle scheduling and dispatching. Their advanced decision support system includes on-line data entry functions, customer usage forecasting, a time/distance network with a shortest path algorithm to compute intercustomer travel times and distances, a mathematical optimization module to produce daily delivery schedules, and an interactive schedule change interface. The optimization module uses a sophisticated Lagrangian relaxation algorithm to solve mixed integer programs with up to 800,000 variables and 200,000 constraints to near optimality. The system, first implemented in October, 1981, has been saving between 6% to 10% of operating costs.
492 citations
"Coordination of production and dist..." refers background in this paper
...Keywords: Production and distribution; Coordination; Planning, Operations management...
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...Research on this inventory routing problem is reported in Bell et al. (1983), Federgruen and Zipkin (1984), Federgruen et al. (1986), Dror and Ball (1987), and Chien et al. (1988)....
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