Models for multi-plant coordination

Bhatnagar, Rohit; Chandra, Pankaj; Goyal, S. K.

doi:10.1016/0377-2217(93)90058-u

Cited by 162 publications

(65 citation statements)

References 84 publications

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“…An overview of available approaches planning problems considering multi-plant configurations can be found in Bhatnagar et al (1993), Pirkul andJayaraman (1998), andMelo et al (2006).…”

Section: Capacity Choicementioning

confidence: 99%

Modelling change in supply-chain-structures and its effect on freight transport demand

Ottemöller

Friedrich

2019

Transportation Research Part E: Logistics and Transportation Re

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Economic activity, especially in the manufacturing industries, is a major determinant of freight transport. Since the actual manufacturing processes are bound to specialised business establishments, which are only partially dispersed across space, commodity flows are required that connect locations of excess supply with locations that show unfulfilled demand for goods. In this context, economic reasoning of the involved actors leads to the formation of industry specific supply chain structures. Various authors emphasise the interrelation of these continuously evolving supply chain structures and freight transport demand. However, so far no disaggregate model exists that explicitly captures this interdependence.The study at hand addresses this gap by developing a disaggregate model for simulating the impact of change in supply chain structures on the corresponding freight transport demand. The proposed model covers centralisation and vertical disintegration as examples of structural change. For this purpose, the model quantitatively describes spatially disaggregate supply chain structures, consisting of business establishments and commodity flows, on the level of entire sectors. The model development is accompanied by an interdisciplinary literature review that gives an overview of existing research on supply chain structures and freight transport demand.The developed model consists of two phases. A first phase generates an artificial industry landscape of business establishments and commodity flows according to available aggregate statistics. The generation relies on elements of stochastic simulation and directed choice procedures. The model's second phase simulates change in the supply chain structures from the first phase. Using linear programming, a maximum solution range regarding the impact on freight transport is calculated. Increasing the degree of assumptions, the solution space can be narrowed. Here, the model applies a combination of stochastic simulation, linear programming, and fitting procedures.The model is applied for analysing centralisation in the poultry industry and vertical disintegration in the automotive industry of Germany. For both cases, a broad range of data sources is used, e.g. common public statistics on establishment sizes and spatial distribution of employment but also sectoral data, e.g. from industry associations or case studies. The real-world consistency of spatial flow patterns is ensured by assigning commodity flows according to statistical macroscopic flows.Overall, the simulation results show that an increase in freight transport performance is to be expected for the case of centralisation as well as vertical disintegration. However, the maximum solution ranges also indicate that assuming suitable location choice and flow assignment a reduction in freight transport performance is mathematically possible. The analysis also addresses the suitability of state measures for mitigating the impact of changes in the supply chain structure on freight transport demand.In summ...

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“…An overview of available approaches planning problems considering multi-plant configurations can be found in Bhatnagar et al (1993), Pirkul andJayaraman (1998), andMelo et al (2006).…”

Section: Capacity Choicementioning

confidence: 99%

Modelling change in supply-chain-structures and its effect on freight transport demand

Ottemöller

Friedrich

2019

Transportation Research Part E: Logistics and Transportation Re

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“…Bhatnagar et al [5] (1993) research the importance of multiplant coordination in making optimal production planning decisions for an entire firm. Two variations of coordination are examined: (1) general coordination, referring to the integration of different functions such as facility location, production, distribution, and marketing; and (2) multiplant coordination, which deals with linking decisions within the same functional department across different stages of the supply chain.…”

Section: Previous Review Papersmentioning

confidence: 99%

“…Vidal and Goetschalckx [73] (1997) find that most models do not take into account the volatility of global supply chains, nor do they consider bill of materials (BOM) constraints. Bhatnagar et al [5] 1993 Multiplant coordination should address nervousness, lot sizing, and safety stock Boone et al [10] 1996 Determines whether a significant difference exists between regions in terms of research; classifies papers based on 3 established frameworks Cohen and Mallik [18] 1997 Reviews the use of analytical models in global supply chain management literature Vidal and Goetschalckx [73] 1997 Reviews production-distribution models with an emphasis on MIP Pontrandolfo and Okogbaa [59] 1999 Develops framework for global manufacturing planning and uses to analyze an MNC's current coordination mode Schmidt and Wilhelm [66] 2000 Reviews papers and modeling issues addressing strategic, tactical, and operational levels…”

Section: Previous Review Papersmentioning

confidence: 99%

Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

Bookbinder

Matuk²,

Ontario³

2009

Decision Technologies and Applications

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A supply chain denotes the series of operations by which raw materials are transformed into components, subassemblies, and finished goods, and then moved through a distribution system to the ultimate user or consumer of the item produced. Product transformation and storage occur at nodes of the network. When those are in different countries or areas of the world, logistics and transportation (between nodes) become even more important.In this tutorial, we review and compare a number of research papers. All are international in scope. Each article emphasizes one or more decisions or activities that distinguish a global supply chain. Some, such as location decisions and supplier selection, are important for domestic supply chains but are more complicated in the international arena. Major differences include border crossings and exchange rates. Other decisions, such as switching production from one country to another, are uniquely global and may depend upon tariffs, quotas, and local content restrictions.Following our rationale for the subset of literature that we chose, those articles are discussed, categorized, and compared in several complementary ways. An assessment is offered of the research conducted to date. Further studies that may be usefully undertaken are suggested.

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“…On the other hand, production planning has been studied widely and deeply without enough consideration on distribution part (Mula et al, 2006). Bhatnagar and Chandra (1993) classified general coordination research into three categories, each representing attempts to coordinate different operations of the firm. These categories represent an integration of decision making as (1) supply and production planning, (2) production and distribution planning, and (3) inventory and distribution planning, respectively.…”

Section: Introductionmentioning

confidence: 99%

A fuzzy solution approach for a multi-objective integrated production-distribution model with multi products and multi periods under uncertainty

Gharehyakheh¹,

Tavakkoli–Moghaddam²

2012

MSL

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This paper considers a multi-objective integrated production-distribution problem (IPDP) for multi-product and multi-production facility with limited capacity vehicles over a multi-period horizon in a two-level supply chain. In order to consider uncertainty of a real supply chain, some fuzzy parameters are considered for costumer demands, machine and labor levels of each manufacturer. The proposed model minimizes total production, inventory and distribution costs and total delivery time simultaneously, and the performance of the proposed model is evaluated on several randomly generated instances. The results show that integrating production and distribution decisions is more efficient than making these two decisions, separately.

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Models for multi-plant coordination

Cited by 162 publications

References 84 publications

Modelling change in supply-chain-structures and its effect on freight transport demand

Modelling change in supply-chain-structures and its effect on freight transport demand

Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

A fuzzy solution approach for a multi-objective integrated production-distribution model with multi products and multi periods under uncertainty

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