Abstract
An integrated production distribution problem in an environment of only order refusal and backorder and order refusal is studied in this work. Plant side capacity and storage restrictions are also considered in this analysis. The effect of this consideration on the supply chain profit is investigated. The model considers fixed cost, setup cost, and core demand. The complexity of the integrated production and distribution planning problems are empirically studied using this model. It is identified that the increase in the number of products increases the complexity than the increase in the number of retailers. Further a sensitivity analysis is carried out to assess the capability of the model.
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