A simulation approach for production-distribution planning with consideration given to replenishment policies

Seok Jin Lim, Suk Jae Jeong, Kyung Sup Kim, Myon Woong Park

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

One of the key issues in the current research area of supply-chain networks is a production-distribution plan taking into account a multi-facility, multi-product, and multi-period problem. The purpose of this study is to determine the optimal production-distribution plan in a network with a bill of material (BOM). First, we present a mathematical model to determine the capacities of facilities including the manufacturing plant and distribution center (DC). Next, with consideration given to the uncertainty and complexity of solving such a network, we apply a simulation approach. The simulation model is developed to analyze a production-distribution plan that satisfies customer demands for higher customer satisfaction and lower total relevant costs, while taking replenishment policies into consideration . The computational results for a simple example of the network represent the developed mathematical and simulation model and show the prospects of using this approach. The multi-factor analysis of variance (ANOVA) test results clearly indicate that all three factors have a significant effect on the grouping output.

Original languageEnglish
Pages (from-to)593-603
Number of pages11
JournalInternational Journal of Advanced Manufacturing Technology
Volume27
Issue number5-6
DOIs
Publication statusPublished - 2006 Jan 1

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All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Software
  • Mechanical Engineering
  • Computer Science Applications
  • Industrial and Manufacturing Engineering

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