A goal programming model for aggregate inventory and distribution planning

A mixed integer linear programming formulation for inventory and distribution planning of a central distribution center serving multiple retail outlets, is considered. This problem is transformed into a goal programming model based on preemptive ordering of three goals - aggregate inventory turnover, service level of filled demand and total system cost. A numerical example is solved using the linear programming software package LINDO on a VAX 11/750 computer system to illustrate the application of the approach. Solutions for all permutations of the prioritized goals are compared. Tradeoffs between the goals are considered for analyzing compromise solutions.

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