Multi-Site Integrated Production And Distribution Planning: A Case Study Of An Electrical Accessory Manufacturing -ABC Company

Abstract

This paper proposed the multi-site integrated production and distribution planning problem using Goal Programming Method and IBM CPLEX Optimization for a case study of an electrical accessory manufacturing company – ABC company. A multiobjective multi-site mathematical model in which the desired objectives are achieved – minimize the total operating cost, minimize total delivery time, and minimize backorder level. Five leading revenue proportion products of ABC company will be considered simultaneously in the period of 12 months along with constraints of associated limit capacities of storage, production, transportation and backorder, and resources conditions of the company. A set of data collected from the company is used to test the effectiveness and the efficiency of the proposed model. To prove the flexibility and the reliability of result of the proposed model, goal priorities with consideration to important of each objective and target value are performed. The proposed model with sensitivity analysis also supports decision makers/ managers to choose the most suitable and optimal solution by comparing the result with the contemporory company’s statistics. The results also consider three other factors: Economic, Social and Environment. Multi-objective multisite integrated production and distribution planning model is solved and validated by using IBM CPLEX V12.10 and Microsoft Excel spreadsheet.