Approach of just-in-time distribution requirements planning for supply chain management

Approach of just-in-time distribution requirements planning for supply chain management

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Article ID: iaor2005894
Country: Netherlands
Volume: 91
Issue: 2
Start Page Number: 101
End Page Number: 107
Publication Date: Jan 2004
Journal: International Journal of Production Economics
Authors: , ,
Keywords: supply chain
Abstract:

The distribution of finished goods to customers plays an important role in supply chain management. This paper introduces an approach that takes care of multi-warehouse and multi-retailer scenarios. In order to pull material through a supply chain effectively, we proposed a just-in-time distribution requirements planning system under the limited supply capacity. The aim is to establish an optimal distribution requirements planning model to minimize the total cost of manufacturing and transportation as well as the earliness/tardiness penalty in meeting retailer's requirements under limited warehouse capacity. Using mathematical deduction, the model can be translated into a linear programming problem and solved by a simplex procedure. The computational results have shown that the proposed approach can offer more effective distribution requirements plans.

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