Global production planning considering marine transportation factors

Qian Huang, Jiahua Weng, Weihao Li, Hisashi Onari

    Research output: Contribution to journalArticle

    Abstract

    In previous studies regarding production-distribution problems, sales planning was not considered and transportation processes were simplified. Such non-consideration and simplification can lead to a decrease in profits since both sales planning and distribution directly influence production planning. Therefore, this paper develops a global production planning model that integrates production and sales planning while considering marine transportation factors (hub selection) as decision variables. Since the model proposed is a nonlinear problem with a nonconvex objective function and nonlinear constraints, it was reformulated into a mixed-integer linear problem so that it can be solved using an optimization solver. Moreover, computational experiments were conducted, and the findings show that, under different production or transportation environments, the hub selection approach realizes more profit compared to a predefined hub approach. Furthermore, scale effect in production and marine transportation processes have also been found in hub selection approach.

    Original languageEnglish
    Pages (from-to)113-120
    Number of pages8
    JournalJournal of Japan Industrial Management Association
    Volume69
    Issue number2E
    DOIs
    Publication statusPublished - 2018 Jan 1

    Fingerprint

    Production Planning
    Planning
    Profit
    Sales
    Scale Effect
    Nonlinear Constraints
    Profitability
    Computational Experiments
    Simplification
    Nonlinear Problem
    Objective function
    Integrate
    Decrease
    Integer
    Factors
    Hub
    Production planning
    Optimization
    Model
    Sales planning

    Keywords

    • Global production planning
    • Hub selection
    • Integrated approach
    • Marine transportation
    • Mathematical model

    ASJC Scopus subject areas

    • Strategy and Management
    • Management Science and Operations Research
    • Industrial and Manufacturing Engineering
    • Applied Mathematics

    Cite this

    Global production planning considering marine transportation factors. / Huang, Qian; Weng, Jiahua; Li, Weihao; Onari, Hisashi.

    In: Journal of Japan Industrial Management Association, Vol. 69, No. 2E, 01.01.2018, p. 113-120.

    Research output: Contribution to journalArticle

    Huang, Qian ; Weng, Jiahua ; Li, Weihao ; Onari, Hisashi. / Global production planning considering marine transportation factors. In: Journal of Japan Industrial Management Association. 2018 ; Vol. 69, No. 2E. pp. 113-120.
    @article{09746b431fe24d41ae822f3bf3cbed5d,
    title = "Global production planning considering marine transportation factors",
    abstract = "In previous studies regarding production-distribution problems, sales planning was not considered and transportation processes were simplified. Such non-consideration and simplification can lead to a decrease in profits since both sales planning and distribution directly influence production planning. Therefore, this paper develops a global production planning model that integrates production and sales planning while considering marine transportation factors (hub selection) as decision variables. Since the model proposed is a nonlinear problem with a nonconvex objective function and nonlinear constraints, it was reformulated into a mixed-integer linear problem so that it can be solved using an optimization solver. Moreover, computational experiments were conducted, and the findings show that, under different production or transportation environments, the hub selection approach realizes more profit compared to a predefined hub approach. Furthermore, scale effect in production and marine transportation processes have also been found in hub selection approach.",
    keywords = "Global production planning, Hub selection, Integrated approach, Marine transportation, Mathematical model",
    author = "Qian Huang and Jiahua Weng and Weihao Li and Hisashi Onari",
    year = "2018",
    month = "1",
    day = "1",
    doi = "10.11221/jima.69.113",
    language = "English",
    volume = "69",
    pages = "113--120",
    journal = "Journal of Japan Industrial Management Association",
    issn = "0386-4812",
    publisher = "Nihon Keikei Kogakkai",
    number = "2E",

    }

    TY - JOUR

    T1 - Global production planning considering marine transportation factors

    AU - Huang, Qian

    AU - Weng, Jiahua

    AU - Li, Weihao

    AU - Onari, Hisashi

    PY - 2018/1/1

    Y1 - 2018/1/1

    N2 - In previous studies regarding production-distribution problems, sales planning was not considered and transportation processes were simplified. Such non-consideration and simplification can lead to a decrease in profits since both sales planning and distribution directly influence production planning. Therefore, this paper develops a global production planning model that integrates production and sales planning while considering marine transportation factors (hub selection) as decision variables. Since the model proposed is a nonlinear problem with a nonconvex objective function and nonlinear constraints, it was reformulated into a mixed-integer linear problem so that it can be solved using an optimization solver. Moreover, computational experiments were conducted, and the findings show that, under different production or transportation environments, the hub selection approach realizes more profit compared to a predefined hub approach. Furthermore, scale effect in production and marine transportation processes have also been found in hub selection approach.

    AB - In previous studies regarding production-distribution problems, sales planning was not considered and transportation processes were simplified. Such non-consideration and simplification can lead to a decrease in profits since both sales planning and distribution directly influence production planning. Therefore, this paper develops a global production planning model that integrates production and sales planning while considering marine transportation factors (hub selection) as decision variables. Since the model proposed is a nonlinear problem with a nonconvex objective function and nonlinear constraints, it was reformulated into a mixed-integer linear problem so that it can be solved using an optimization solver. Moreover, computational experiments were conducted, and the findings show that, under different production or transportation environments, the hub selection approach realizes more profit compared to a predefined hub approach. Furthermore, scale effect in production and marine transportation processes have also been found in hub selection approach.

    KW - Global production planning

    KW - Hub selection

    KW - Integrated approach

    KW - Marine transportation

    KW - Mathematical model

    UR - http://www.scopus.com/inward/record.url?scp=85052890861&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=85052890861&partnerID=8YFLogxK

    U2 - 10.11221/jima.69.113

    DO - 10.11221/jima.69.113

    M3 - Article

    VL - 69

    SP - 113

    EP - 120

    JO - Journal of Japan Industrial Management Association

    JF - Journal of Japan Industrial Management Association

    SN - 0386-4812

    IS - 2E

    ER -