A Multi-Period Production, Distribution, and Inventory Planning Model,

Abstract : Increasingly, today's manufacturing companies--both large and small--are finding it necessary to adopt computer-based planning systems to monitor their production, distribution, and inventory (PDI) functions. This paper describes an optimization model that captures the multi-period aspect of many PDI planning systems. This model is based on the well-known pure network flow (transhipment) problem. The model can be used to optimally select: production levels at multiple plant locations, (primary) distribution patterns between plants and storage facilities, inventory levels at multiple storage sites, (secondary) distribution patterns between storage facilities, and customer demand points, customer satisfaction levels. (Author)