Abstract
This research proposes a new environment of an integrated production, distribution, and inventory planning problem with an additional storage constraints in a multi-level multi-product logistics system. This environment is generalized to the complex structural characteristics of the continuous flow industrial systems considered in collaboration with a leading chemical industry. This work addressed both horizontal and vertical coherence in the supply chain. This paper presents a mixed integer linear programming which combines several aspects related to (1) multi-site multi-product production units (2) multi-site multi-product storage units with minimal storage time, (3) a conveyor transportation system, and (4) a set of loading docks with loading time. The objective is to maximize the demand satisfaction rate while minimizing the inventory. On a sizeable real dataset obtained from our industrial partner, we show the efficacy and the usefulness of the model and demonstrate the benefit of integrating decisions in terms of improving demand satisfaction rates and minimizing inventory.
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