Customers’ desire for ever shorter delivery times forces companies to produce and deliver customer orders in the shortest possible time. To achieve this goal, companies can follow the distributed manufacturing paradigm and try to move their production sites close to their customers, which automatically leads to a location problem that has to be solved. Another approach is to coordinate production and distribution scheduling in such a way that punctual delivery can take place at the lowest possible cost, whereby stock keeping is largely avoided. The article shows for the first time that the traditionally successively planned problems of location planning and joint production and distribution planning can be combined in an integrated approach. A multi-period MIP model is set up to coordinate both subproblems, so that the overall costs incurred can be minimized. The simultaneous planning approach is illustrated using a numerical example and then evaluated critically.
|Title of host publication||Logistics Management|
|Number of pages||13|
|Publication status||Published - 7 Sept 2019|
|Series||Lecture Notes in Logistics|
- Production and Distribution Operations, Site Selection