JOINT OPTIMIZATION OF PRODUCTION AND DISTRIBUTION

Abstract

In today’s competitive global market, companies face pressures to enhance efficiency, reduce costs, and improve customer satisfaction by optimizing their supply chain processes. Despite advancements, supply chains suffer from systemic inefficiencies like the bullwhip effect, which increases operational costs and decreases service levels. Addressing this issue requires robust coordination mechanisms, notably Vendor Managed Inventory (VMI), where manufacturers manage retailer inventories using shared demand data. Implementing VMI integrates key supply chain functions. This thesis addresses practical and strategic supply chain challenges by focusing on VMI and integrated production-distribution planning. It aims to develop advanced decision-support tools to efficiently integrate production, inventory, and distribution planning, optimizing resource management and operational performance while minimizing overall costs