A Framework of the Integrated Production/Distribution Model with Non-Integer Lags

Jong Soo Kim SO Ki Young Shin SO Chi Ung MoonDepartment of Industrial Engineering, Hanyang University, Ansan, 426-791Until now, the traditional production models and logistics have developed a broader strategic approach called supply chain. However, there are some obstacles to apply industry practice because of unrealistic assumptions. The most serious of them is that they assume the lead times are integer multiples of the planning time grid. This assumption makes it difficult to express the processing and transportation lags correctly. Thus, in this paper, we propose a new methodology for the integrated production/distribution model having non-integer time lags using the concept of dynamic production function. In case that the time lags are integer or non-integer, the dynamic production function reflects well the situation under given environments. Experiments show that the proposed model can express the real system more accurately than the prior model can.Keywords : supply chain management, non-integer leadtime, integrated production/distribution model