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

    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

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