Integrated aggregate supply chain planning using memetic algorithm – A performance analysis case study

Abstract

This paper aims to examine how a complex supply chain yields cost reduction benefits through the global integration of production and distribution decisions. The research is motivated by a complex real world supply chain planning problem facing a large automotive company. A mixed-integer nonlinear production-distribution planning model is solved using a customised memetic algorithm. The performance and effectiveness of the developed model and solution approach in achieving the global optimisation is investigated through experiments comparing the numerical results from the proposed integrated approach with those of a typical non-integrated (hierarchical) production–distribution optimisation.

Keywords:

• supply chain management
• production–distribution planning
• integration
• global optimisation
• performance analysis

Acknowledgements

The authors are grateful to the two anonymous referees for their constructive comments on improving the presentation of this paper. Special thanks to Mr Alireza Sefat, Mr Reza Molaei, and Mr Hassan Ebrahimi for providing technical assistance during this research.