Application of linear programming to optimization of production and transportation plans in supply chain

Authors

DOI:

https://doi.org/10.15587/2312-8372.2014.23050

Keywords:

supply chain, VAT-classification, multi-index linear programming model, synergetic effect, stochastic optimization, random demand

Abstract

This article presents the substantiation of expediency and efficiency of linear programming models application for joint optimization of production plans of suppliers and manufacturer plans, transportation plans for finished product delivery at destinations. It is supposed that there are a set of suppliers and one manufacturer. The method of synergetic effect from integration of supply chain participants is proposed on the basis of above linear programming model. The numerical results are given.

Also in the article the stochastic optimization model for joint optimization plans of supply and finished product production under random demand is built. It is shown that deterministic equivalent of stochastic optimization problem is reduced to a convex programming problem.

The results obtained are the basis for further investigations and generalizations, for example, application of dynamic models of inventory control (the Wagner-Whitin type model).

Author Biographies

Юлия Владимировна Куруджи, Odessa National Maritime University, Mechnikov Str.,34, Odessa, Ukraine, 65029

PhD student

Department of Management and Marketing in Marine Transport

Михаил Яковлевич Постан, Odessa National Maritime University, Mechnikov Str.,34, Odessa, Ukraine, 65029

Doctor of Economics, Professor, Head of the Department of Management and Marketing in Marine Transport

References

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Published

2014-03-18

How to Cite

Куруджи, Ю. В., & Постан, М. Я. (2014). Application of linear programming to optimization of production and transportation plans in supply chain. Technology Audit and Production Reserves, 2(2(16), 42–47. https://doi.org/10.15587/2312-8372.2014.23050

Issue

Vol. 2 No. 2(16) (2014): Economy of enterprise

Section

Economy of enterprise

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Copyright (c) 2016 Юлия Владимировна Куруджи, Михаил Яковлевич Постан

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