Production/physical distribution scheduling in a two-stage distribution network

by Paraskevas D. Vekris, Craig Moore

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback38 pages $20.00 $16.00 20% Web Discount

The problem of scheduling production and distribution activities in a multi-product, multi-period, two-stage distribution network is formulated as a concave programming problem. Incorporated are several characteristics of real distribution systems such as economies of scale in production, transportation and handling, limitations in production and inventory capacities, direct shipments from plants to customers, and maintenance of stable production and handling work forces. The iterative algorithm developed for this problem sequentially represents the concave objective function with a linear approximation (extrapolation), continuously improving the objective function value by solving a number of linear programming subproblems. The quality of the obtained solutions is assessed using a statistical procedure, a lower bound, and a comparison with solutions obtained empirically. Computational experience on realistically sized problems is reported.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.