A Model to Integrated Production-Distribution Planning in a Supply Chain

Supply chain management (SCM) is a subject that has found so much attention among different commercial and industrial organizations due to competing environment of products. Therefore, integration of constituent element of this chain is a great deal. One of the important subjects of supply chain is production-distribution planning. Integrated production and distribution of products has key role to increase of the costs in supply chain. In this paper, a bi-objective integrated production-distribution problem in a three echelon supply chain includes factories, distribution centers and final costumers for multi-products at multi-time period are presented. Two conflicting objectives by minimizing total costs of chain and costs of the distribution warehouses are considered. The Lp-metric method with P=1 and P=∞ is used to solve the model. Finally by considering two metrics of solution quality as integrated objective functions, and CPU, time method have been implemented on several problems and the performance of proposed methodologies is analyzed as statistic.