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Dissertation
Demand driven production and distribution: seamless integration of downstream supply chain decisions using electronic data interchange
Doctor of Philosophy (Ph.D.), Drexel University
Jun 1999
DOI:
https://doi.org/10.17918/00007989
Abstract
The decisions regarding production, inventory and distribution planning are made independent of each other in most organizations. In reality, however, these decisions are interdependent. Existing inventory models consider the trade off between fixed reorder and variable inventory holding costs. In an Electronic Data Interchange (EDI) environment, a significant portion of the reordering cost is the transportation cost. In a multicommodity, multiple location distribution network, the transportation cost of a commodity can vary greatly depending on the ordering pattern of other commodities and locations nearby. Even in production planning, in the context of a supply chain network, manufacturing lot sizes and their timings depend on the demands, which are, in effect, the planned dispatches to various locations in different periods from the production facility. In an EDI environment, one can take advantage of these interrelationships by integrating the vehicle routing, inventory management and production planning decisions for all commodities at all locations, in order to minimize total logistic costs. The basic aim of this research is three fold; First, a "Demand Driven Production and Distribution" (DDPD) operating concept is developed for a multicommodity production and distribution scenario. Second, a mixed integer programming model is developed so as to combine the decisions regarding the production plans, delivery quantities and vehicle routes to meet the demands for all commodities at all locations. Third, an efficient solution procedure is developed using a modified Lagrangian relaxation approach in a branch-and-bound framework, to solve the mixed integer programming model. Computational results show that the modified Lagrangian relaxation is fast enough for all practical purposes. Branch-and-bound procedure can be used to arrive at the optimal solution. It is also shown that substantial savings in total logistic costs can be achieved by using the proposed DDPD approach.
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Details
- Title
- Demand driven production and distribution
- Creators
- Sudhirkumar N. Mallya
- Contributors
- J. Burton (Advisor) - Drexel University, Drexel University (1970-)
- Awarding Institution
- Drexel University
- Degree Awarded
- Doctor of Philosophy (Ph.D.)
- Publisher
- Drexel University; Philadelphia, Pennsylvania
- Number of pages
- viii, 118 pages
- Resource Type
- Dissertation
- Language
- English
- Academic Unit
- College of Business (and) Administration (1970-1999); Drexel University
- Other Identifier
- 991021888984104721