Optimization/simulation modelling of the integrated production-distribution plan: an innovative survey

Abstract

Implementation of a supply-chain (SC) system has crucial impacts on a company's financial performance. Overall performance of a SC network is influenced significantly by the decisions taken in its production-distribution plan which integrates the decisions in production, transport and warehousing as well as inventory management. Thus, one key issue in the current research area of performance evaluation of SC network is the optimization of production-distribution plan considering its actual complexity. This paper presents a comprehensive review and analysis on the proposed production-distribution models with special emphasis placed on the optimization and simulation studies. A summary table will be established to describe the main characteristics of the selected models outlining the strengths, weaknesses and the level of complexity for each study. Finally, by providing suggestions for improvements, further works in the area will be addressed.