IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v48y2018i6p578-590.html
   My bibliography  Save this article

Production and Distribution Planning in Danone Waters China Division

Author

Listed:
  • Simin Zhang

    (Department of Business Management, Lingnan College, Sun Yat-Sen University, 510275 Guangzhou, China)

  • Haiqing Song

    (Department of Business Management, Lingnan College, Sun Yat-Sen University, 510275 Guangzhou, China)

Abstract

For a logistics manager, the problem of making decisions on production and distribution planning is important but difficult to solve, especially when these decisions involve many products and complicated constraints. This work addresses the development of a decision support system (DSS) and its mathematical model to solve such problems at Danone Waters China Division, one of the China’s largest producers and wholesalers of water and beverages. The DSS is a multistage integration project designed with the objective of integrating operations research tools and techniques into the production and distribution planning process. We first formulate this problem as a mixed-integer program, which involves the production, transportation, and storage costs and the constraint conditions. We then provide customizable options to the Danone Waters managers through simple graphical interfaces. We next develop a method of data collection and preprocessing and solve the model using optimization algorithms. The results show that this approach significantly increases efficiency and reduces total cost. In this paper, we also identify an approach for integrating operations research tools and techniques into the planning process.

Suggested Citation

  • Simin Zhang & Haiqing Song, 2018. "Production and Distribution Planning in Danone Waters China Division," Interfaces, INFORMS, vol. 48(6), pages 578-590, November.
    • Handle: RePEc:inm:orinte:v:48:y:2018:i:6:p:578-590
    DOI: 10.1287/inte.2018.0973
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/inte.2018.0973
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.2018.0973?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Goetschalckx, Marc & Vidal, Carlos J. & Dogan, Koray, 2002. "Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms," European Journal of Operational Research, Elsevier, vol. 143(1), pages 1-18, November.
    2. Baojun Jiang & Lin Tian & Yifan Xu & Fuqiang Zhang, 2016. "To Share or Not to Share: Demand Forecast Sharing in a Distribution Channel," Marketing Science, INFORMS, vol. 35(5), pages 800-809, September.
    3. Bilge Bilgen & Yelda Çelebi, 2013. "Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling," Annals of Operations Research, Springer, vol. 211(1), pages 55-82, December.
    4. Christian Viergutz & Sigrid Knust, 2014. "Integrated production and distribution scheduling with lifespan constraints," Annals of Operations Research, Springer, vol. 213(1), pages 293-318, February.
    5. Chung‐Lun Li & Jinwen Ou, 2005. "Machine scheduling with pickup and delivery," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(7), pages 617-630, October.
    6. Goyal, Suresh K. & Nebebe, Fassil, 2000. "Determination of economic production-shipment policy for a single-vendor-single-buyer system," European Journal of Operational Research, Elsevier, vol. 121(1), pages 175-178, February.
    7. Donald L. Iglehart, 1963. "Optimality of (s, S) Policies in the Infinite Horizon Dynamic Inventory Problem," Management Science, INFORMS, vol. 9(2), pages 259-267, January.
    8. Sabri, Ehap H. & Beamon, Benita M., 2000. "A multi-objective approach to simultaneous strategic and operational planning in supply chain design," Omega, Elsevier, vol. 28(5), pages 581-598, October.
    9. Zhi-Long Chen, 2010. "Integrated Production and Outbound Distribution Scheduling: Review and Extensions," Operations Research, INFORMS, vol. 58(1), pages 130-148, February.
    10. Pundoor, Guruprasad & Chen, Zhi-Long, 2009. "Joint cyclic production and delivery scheduling in a two-stage supply chain," International Journal of Production Economics, Elsevier, vol. 119(1), pages 55-74, May.
    11. Zhi-Long Chen & Guruprasad Pundoor, 2006. "Order Assignment and Scheduling in a Supply Chain," Operations Research, INFORMS, vol. 54(3), pages 555-572, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gruson, Matthieu & Cordeau, Jean-François & Jans, Raf, 2021. "Benders decomposition for a stochastic three-level lot sizing and replenishment problem with a distribution structure," European Journal of Operational Research, Elsevier, vol. 291(1), pages 206-217.
    2. Wang, Julong & Liu, Zhixue & Li, Feng, 2024. "Integrated production and transportation scheduling problem under nonlinear cost structures," European Journal of Operational Research, Elsevier, vol. 313(3), pages 883-904.
    3. Cunha, Jesus O. & Melo, Rafael A., 2021. "Valid inequalities, preprocessing, and an effective heuristic for the uncapacitated three-level lot-sizing and replenishment problem with a distribution structure," European Journal of Operational Research, Elsevier, vol. 295(3), pages 874-892.
    4. Li, Feng & Xu, Shifu & Xu, Zhou, 2023. "New exact and approximation algorithms for integrated production and transportation scheduling with committed delivery due dates and order acceptance," European Journal of Operational Research, Elsevier, vol. 306(1), pages 127-140.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gao, Su & Qi, Lian & Lei, Lei, 2015. "Integrated batch production and distribution scheduling with limited vehicle capacity," International Journal of Production Economics, Elsevier, vol. 160(C), pages 13-25.
    2. Azeddine Cheref & Alessandro Agnetis & Christian Artigues & Jean-Charles Billaut, 2017. "Complexity results for an integrated single machine scheduling and outbound delivery problem with fixed sequence," Journal of Scheduling, Springer, vol. 20(6), pages 681-693, December.
    3. B.‐Y. Cheng & J.Y.‐T. Leung & K. Li & S.‐L. Yang, 2015. "Single batch machine scheduling with deliveries," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(6), pages 470-482, September.
    4. Ling Liu & Sen Liu, 2020. "Integrated Production and Distribution Problem of Perishable Products with a Minimum Total Order Weighted Delivery Time," Mathematics, MDPI, vol. 8(2), pages 1-18, January.
    5. Sun, X.T. & Chung, S.H. & Chan, Felix T.S., 2015. "Integrated scheduling of a multi-product multi-factory manufacturing system with maritime transport limits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 110-127.
    6. Yunqiang Yin & Doudou Li & Dujuan Wang & T. C. E. Cheng, 2021. "Single-machine serial-batch delivery scheduling with two competing agents and due date assignment," Annals of Operations Research, Springer, vol. 298(1), pages 497-523, March.
    7. Ullrich, Christian A., 2013. "Integrated machine scheduling and vehicle routing with time windows," European Journal of Operational Research, Elsevier, vol. 227(1), pages 152-165.
    8. Arda, Yasemin & Cattaruzza, Diego & François, Véronique & Ogier, Maxime, 2024. "Home chemotherapy delivery: An integrated production scheduling and multi-trip vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 317(2), pages 468-486.
    9. Liang Tang & Zhihong Jin & Xuwei Qin & Ke Jing, 2019. "Supply chain scheduling in a collaborative manufacturing mode: model construction and algorithm design," Annals of Operations Research, Springer, vol. 275(2), pages 685-714, April.
    10. Feng Li & Zhou Xu & Zhi-Long Chen, 2020. "Production and Transportation Integration for Commit-to-Delivery Mode with General Shipping Costs," INFORMS Journal on Computing, INFORMS, vol. 32(4), pages 1012-1029, October.
    11. Jing Fan & Hui Shi, 0. "A three-stage supply chain scheduling problem based on the nursing assistants’ daily work in a hospital," Journal of Combinatorial Optimization, Springer, vol. 0, pages 1-13.
    12. Farahani, Reza Zanjirani & Rezapour, Shabnam & Drezner, Tammy & Fallah, Samira, 2014. "Competitive supply chain network design: An overview of classifications, models, solution techniques and applications," Omega, Elsevier, vol. 45(C), pages 92-118.
    13. Pedro L. Miranda & Reinaldo Morabito & Deisemara Ferreira, 2018. "Optimization model for a production, inventory, distribution and routing problem in small furniture companies," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 26(1), pages 30-67, April.
    14. Sawik, Tadeusz, 2014. "Joint supplier selection and scheduling of customer orders under disruption risks: Single vs. dual sourcing," Omega, Elsevier, vol. 43(C), pages 83-95.
    15. Quetschlich, Mathias & Moetz, André & Otto, Boris, 2021. "Optimisation model for multi-item multi-echelon supply chains with nested multi-level products," European Journal of Operational Research, Elsevier, vol. 290(1), pages 144-158.
    16. Sun, Xuting & Chung, Sai-Ho & Choi, Tsan-Ming & Sheu, Jiuh-Biing & Ma, Hoi Lam, 2020. "Combating lead-time uncertainty in global supply chain's shipment-assignment: Is it wise to be risk-averse?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 406-434.
    17. Renato Matta, 2019. "Product costing in the strategic formation of a supply chain," Annals of Operations Research, Springer, vol. 272(1), pages 389-427, January.
    18. Jang, Wooseung & Kim, Daeki & Park, Kwangtae, 2013. "Inventory allocation and shipping when demand temporarily exceeds production capacity," European Journal of Operational Research, Elsevier, vol. 227(3), pages 464-470.
    19. Lixin Tang & Feng Li & Zhi-Long Chen, 2019. "Integrated Scheduling of Production and Two-Stage Delivery of Make-to-Order Products: Offline and Online Algorithms," INFORMS Journal on Computing, INFORMS, vol. 31(3), pages 493-514, July.
    20. Kergosien, Y. & Gendreau, M. & Billaut, J.-C., 2017. "A Benders decomposition-based heuristic for a production and outbound distribution scheduling problem with strict delivery constraints," European Journal of Operational Research, Elsevier, vol. 262(1), pages 287-298.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:48:y:2018:i:6:p:578-590. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.