Optimization of Integrated Production and Distribution Planning In the Cement Industry with Multi-Site Plants Model

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Each stage of the supply chain must be able to maximize value to achieve supply chain profitability. Handling production planning and distribution planning as a part of the supply chain are carried out to obtain optimal strategies that increase efficiency and reduce the risk of supply chain network failure. Distribution cost problems in the fulfillment of raw materials affect the total production costs as a whole. This paper proposes an integrated production and distribution planning in a multi-site plants model, in order to obtain optimal profit from production in each plant in a different location. This model uses a raw material fulfillment multi-suppliers scheme through a mixture of internal and external sources. Mixed-integer linear programming method is used for model optimization by considering production capacity constraints, demand constraints, supply constraints, production costs, logistics costs, and product revenue. Analysis of various demand conditions was applied in the multi-suppliers scheme to see the sensitivity of the parameters.

Original languageEnglish
Title of host publicationProceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering
Subtitle of host publicationBuilding Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021
PublisherAssociation for Computing Machinery
Pages102-108
Number of pages7
ISBN (Electronic)9781450390385
DOIs
Publication statusPublished - 25 May 2021
Event4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021 - Depok, Indonesia
Duration: 25 May 2021 → …

Publication series

NameACM International Conference Proceeding Series

Conference

Conference4th Asia Pacific Conference on Research in Industrial and Systems Engineering: Building Business Resilience to Face the Challenge in Pandemic Era, APCORISE 2021
Country/TerritoryIndonesia
CityDepok
Period25/05/21 → …

Keywords

  • distribution systems
  • integrated models
  • mixed-integer linear programming
  • multi-site plants
  • Production systems

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