Joint decision model for logistic network systems with single product

The joint decisions of production assignment, lot sizing, transportation and order quantity for single product in a production–distribution network system with multiple suppliers and multiple destinations are discussed in this paper. The joint decision addressed in this paper is in effect a two layer decision procedure, of which the upper layer is the joint decision in production assignment and lot sizing (APLS), and the lower layer is a joint transportation and order quantity (TOQ) problem. Subsequently, a two-layer decomposition method combined with several heuristics is developed to solve the joint decision model (JDM), by which an assignment heuristics and an improved linear programming-based heuristics are adopted to solve APLS and TOQ model respectivly. A numerical example is illustrated in the paper.