A review of integrated analysis of production-distribution systems

This paper reviews recent work on integrated analysis of production-distribution systems, and identifies important areas where further research is needed. By integrated analysis we understand analysis performed on models that integrate decisions of different production and distribution functions for a simultaneous optimization. We review work that explicitly considers the transportation system in the analysis, since we are interested in the following questions: (i) how have logistics aspects been included in the integrated analysis? and (ii) what competitive advantages, if any, have been obtained from the integration of the distribution function to other production functions within a company and among different companies? In our review we also mention whether the work has been done at the strategic level, i.e., if it concerns the design of the distribution system, or at the tactical level, i.e., if it concerns optimization problems for which the characteristics of the distribution system are provided.

[1]  Randolph W. Hall,et al.  Reducing Logistics Costs at General Motors , 1987 .

[2]  Louis M. Dalberto,et al.  Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer , 1983 .

[3]  Dennis E. Blumenfeld,et al.  TRADE-OFF BETWEEN FREIGHT EXPEDITING AND SAFETY STOCK INVENTORY COSTS , 1984 .

[4]  R. Ballou Business Logistics Management , 1991 .

[5]  David F. Pyke,et al.  Multiproduct integrated production—distribution systems☆ , 1994 .

[6]  Richard C. Larson,et al.  Transporting Sludge to the 106-Mile Site: An Inventory/Routing Model for Fleet Sizing and Logistics System Design , 1988, Transp. Sci..

[7]  Randolph W. Hall,et al.  Distribution Strategies that Minimize Transportation and Inventory Costs , 1985, Oper. Res..

[8]  Awi Federgruen,et al.  One warehouse multiple retailer systems with vehicle routing costs , 1990 .

[9]  Marc Goetschalckx,et al.  Strategic production-distribution models: A critical review with emphasis on global supply chain models , 1997 .

[10]  T. Chien,et al.  Determining profit-maximizing production/shipping policies in a one-to-one direct shipping, stochastic demand environment , 1993 .

[11]  David F. Pyke,et al.  Optimal base stock policies and truck capacity in a two-echelon system , 1993 .

[12]  Prem Vrat,et al.  An integrated production-inventory-distribution model for manufacture of urea: a case , 1991 .

[13]  Clarence H. Martin,et al.  Integrated Production, Distribution, and Inventory Planning at Libbey-Owens-Ford , 1993 .

[14]  Hau L. Lee,et al.  Strategic Analysis of Integrated Production-Distribution Systems: Models and Methods , 1988, Oper. Res..

[15]  Kamlesh Mathur,et al.  Integrating routing and inventory decisions in one-warehouse multiretailer multiproduct distribution systems , 1997 .

[16]  Julian Benjamin,et al.  An Analysis of Inventory and Transportation Costs in a Constrained Network , 1989, Transp. Sci..

[17]  Richard C. Larson,et al.  Period and phase of customer replenishment: A new approach to the Strategic Inventory/Routing problem , 1995 .

[18]  Pankaj Chandra,et al.  A Dynamic Distribution Model with Warehouse and Customer Replenishment Requirements , 1993 .

[19]  M. Savelsbergh,et al.  The Inventory Routing Problem , 1998 .

[20]  Marshall L. Fisher,et al.  Coordination of production and distribution planning , 1994 .

[21]  Moshe Dror,et al.  A computational comparison of algorithms for the inventory routing problem , 1985 .

[22]  S. Goyal,et al.  Models for multi-plant coordination , 1993 .

[23]  K. L. Mak,et al.  Design of integrated production-inventory-distribution systems using genetic algorithm , 1995 .

[24]  David F. Pyke,et al.  Performance characteristics of stochastic integrated production-distribution systems , 1993 .

[25]  Moshe Dror,et al.  Stochastic Inventory Routing: Route Design with Stockouts and Route Failures , 1989, Transp. Sci..

[26]  Walter Ukovich,et al.  Minimizing Transportation and Inventory Costs for Several Products on a Single Link , 1994, Oper. Res..

[27]  Bruce L. Golden,et al.  Analysis of a large scale vehicle routing problem with an inventory component , 1984 .

[28]  Awi Federgruen,et al.  An Allocation and Distribution Model for Perishable Products , 1986, Oper. Res..

[29]  D. Blumenfeld,et al.  Analyzing trade-offs between transportation, inventory and production costs on freight networks , 1985 .

[30]  David F. Pyke,et al.  Effects of flexibility through set-up time reduction and expediting on integrated production-distribution systems , 1990, IEEE Trans. Robotics Autom..

[31]  Paul H. Zipkin,et al.  Models for Design and Control of Stochastic, Multi-Item Batch Production Systems , 1986, Oper. Res..

[32]  Richard T. Wong,et al.  An Integrated Inventory Allocation and Vehicle Routing Problem , 1989, Transp. Sci..

[33]  Fred Glover,et al.  An Integrated Production, Distribution, and Inventory Planning System , 1979 .

[34]  Kazuyoshi Ishii,et al.  Integrated production, inventory and distribution systems , 1988 .

[35]  M O Ball ALLOCATION/ROUTING: MODELS AND ALGORITHMS. VEHICLE ROUTING: METHODS AND STUDIES. STUDIES IN MANAGEMENT SCIENCE AND SYSTEMS - VOLUME 16 , 1988 .

[36]  Moshe Dror,et al.  A vehicle routing improvement algorithm comparison of a "greedy" and a matching implementation for inventory routing , 1986, Comput. Oper. Res..

[37]  R. H. King,et al.  Coordinating Decisions for Increased Profits , 1980 .

[38]  Awi Federgruen,et al.  A Combined Vehicle Routing and Inventory Allocation Problem , 1984, Oper. Res..

[39]  Bruce L. Golden,et al.  OR Forum - Perspectives on Vehicle Routing: Exciting New Developments , 1986, Oper. Res..

[40]  Candace Arai Yano,et al.  Transportation contracts and safety stocks for just-in-time deliveries Candace Arai Yano, Yigal Gerchak. , 1989 .

[41]  Douglas J. Thomas,et al.  Coordinated supply chain management , 1996 .

[42]  Moshe Dror,et al.  Inventory/routing: Reduction from an annual to a short-period problem , 1987 .