Authors
Maryam Darvish, Leandro C. Coelho
Publication date
2018/7
Journal
European Journal of Operational Research
Volume
268
Issue
1
Pages
203-214
Publisher
Elsevier
Description
Traditionally, a typical approach towards supply chain planning has been the sequential one. By ignoring the links between decisions, this approach leads to each department of a company making its own decisions, regardless of what others are doing, and overlooking the synergy of a global strategy. However, companies have realized that significant improvements can occur by exploiting an integrated approach, where various decisions are simultaneously taken into consideration and jointly optimized. Motivated by a real case, in this paper we consider a production–distribution system that deals with location, production, inventory, and distribution decisions. The objective is to minimize total costs while satisfying demands within a delivery time window. To solve the problem sequentially, we exploit several commonly used procedures based on separately solving each part of the problem. The integrated problem is …
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