An Efficient Approach for Solving Integrated Production and Distribution Planning Problems: Cost vs. Energy

Abstract

The increasing customer expectations for customized products of high quality in short delays and the worldwide competition in terms of quality and costs have pushed industries to implement new strategies to manage their supply chain decisions. In this context, the integrated planning is becoming the most dominant over the operational research field because of its efficiency and its ability to cover the different aspects of the problem. Production routing problem is one of the problems of the integrated planning that is of interest in optimizing simultaneously production, inventory, and distribution planning. This paper has the purpose of developing two mono-objective models for the production-routing problem; one of them minimizes the total costs, while the other one minimizes the energy consumed by the production system. Finally, a bi-objective model is proposed to combine the two objectives mentioned previously using the LP-metric method in the context of a sustainable supply chain. Experimental results are also presented and discussed through the different scenarios.