Proceedings of The 3rd International Conference on Applied Research in Engineering, Science and Technology
Optimal Production and Distribution for Efficient Supply Chains
This paper determines the optimal configuration of a production and distribution network which is subjected to economic constraints. The network has restrictions on production and facility capacity. The economic constraints are inclusive of production costs and transportation costs. The total costs of these two areas i.e. production and distribution need to be optimized and the demand has to be satisfied. The optimal production will be determined by the total number of these products produced at the factory and the production cost of each product. To optimize the costs, a mathematical model was designed and solved with the help of a software package. Each customer base is required to only receive their products from one warehouse. Before a case study can be done, randomly generated data had to be used to check for the effectiveness of the model. To optimize the costs, a mathematical model was designed and solved with the help of a software package. The problem is to be solved using a mixed integer linear program (MILP) which requires a binary.21 different scenarios will be were investigated in order to check for effectiveness.
Keywords: Production, Distribution, MILP.