Advanced Planning for Multi-product Across a Supply Chain

Abstract

This paper presents a linear integer programming model to plan the production for multiple products. The production is planned using information shared across a supply chain. The advantage of information sharing has been proved from research that it can make the whole supply chain globally visualized and yet decreasing in variability on the supply chain. The objective function of the proposed model is to minimize the total costs involved including the production costs, the distribution costs, the setup costs of manufacturing, and the fixed costs of distributing. From previous research, one more restriction which is limitation of distribution centers has been added to make the model more realistic. Numerical results verify that this model can be used to generate feasible and optimal plans for multiple products across the supply chain.