Skip to main content

Integrated Supply Chain Planning: A Review

  • Conference paper
  • First Online:
Modeling and Simulation in Engineering, Economics and Management (MS 2016)

Abstract

Supply chain management requires making strategic, tactical and operational decisions which involve suppliers, manufacturers and customers. Potential decision makers are involved in a centralized/decentralized decision structure which describes their relationships and interdependencies. The use of mathematical models to optimize supply chain planning problems one at a time has been extensively discussed in the literature. The integration of two or more of these problems and the use of mathematical programming to model them is less frequent. This paper reviews the main mathematical models recently developed to address the decision making process in integrated deterministic supply chain planning, emphasizing the processes which are integrated and the characteristics of the model.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Schneeweiss, C.: Distributed decision making in supply chain management. Int. J. Prod. Econ. 84, 71–83 (2003)

    Article  Google Scholar 

  2. Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E.: Designing and Managing the Supply Chain: Concepts, Strategies and Case Studies, 3rd edn. McGraw-Hill, New York (2009)

    MATH  Google Scholar 

  3. Beamon, B.: Supply chain design and analysis: models and methods. Int. J. Prod. Econ. 55, 281–294 (1998)

    Article  Google Scholar 

  4. Min, H., Zhou, G.: Supply chain modeling: past, present and future. Comp. Ind. Eng. 43, 231–249 (2002)

    Article  Google Scholar 

  5. Goetschalckx, M., Vidal, C., Dogan, K.: Modeling and design of global logistics systems: a review of integrated strategic and tactical models and design algorithms. Eur. J. Oper. Res. 143, 1–18 (2002)

    Article  MATH  Google Scholar 

  6. Melo, M., Nickel, S., da Gama, F.S.: Facility location and supply chain management - a review. Eur. J. Oper. Res. 196, 401–412 (2009)

    Article  MathSciNet  MATH  Google Scholar 

  7. Schmid, V., Doerner, K., Laporte, G.: Rich routing problems arising in supply chain management. Eur. J. Oper. Res. 224, 435–448 (2013)

    Article  MathSciNet  MATH  Google Scholar 

  8. Okongwu, U., Lauras, M., François, J., Deschamps, J.C.: Impact of the integration of tactical supply chain planning determinants on performance. J. Manuf. Sys. 38, 181–194 (2016)

    Article  Google Scholar 

  9. Nagy, G., Salhi, S.: Location-routing: issues, models and methods. Eur. J. Oper. Res. 177, 649–672 (2007)

    Article  MathSciNet  MATH  Google Scholar 

  10. Prodhon, C., Prins, C.: A survey of recent research on location-routing problems. Eur. J. Oper. Res. 238, 1–17 (2014)

    Article  MathSciNet  MATH  Google Scholar 

  11. Drexl, M., Schneider, M.: A survey of variants and extensions of the location-routing problem. Eur. J. Oper. Res. 241, 283–308 (2015)

    Article  MathSciNet  Google Scholar 

  12. Amiri, A.: Designing a distribution network in a supply chain system: formulation and efficient solution procedure. Eur. J. Oper. Res. 171, 567–576 (2006)

    Article  MATH  Google Scholar 

  13. Ross, A., Jayaraman, V.: An evaluation of new heuristics for the location of cross-docks distribution centers in supply chain network design. Comp. Ind. Eng. 55, 64–79 (2008)

    Article  Google Scholar 

  14. Olivares-Benitez, E., Ríos-Mercado, R., González-Velarde, J.: A metaheuristic algorithm to solve the selection of transportation channels in supply chain design. Int. J. Prod. Econ. 145, 161–172 (2013)

    Article  Google Scholar 

  15. Borges Lopes, R., Ferreira, C., Sousa Santos, B.: A simple and effective evolutionary algorithm for the capacitated location-routing problem. Comp. Oper. Res. 70, 155–162 (2016)

    Article  MathSciNet  Google Scholar 

  16. Aissaoui, N., Haouari, M., Hassini, E.: Supplier selection and order lot sizing modeling: a review. Comp. Oper. Res. 34, 3516–3540 (2007)

    Article  MATH  Google Scholar 

  17. Ben-Daya, M., Asad, R., Seliaman, M.: An integrated production inventory model with raw material replenishment considerations in a three layer supply chain. Int. J. Prod. Econ. 143, 53–61 (2013)

    Article  Google Scholar 

  18. Sawik, T.: Coordinated supply chain scheduling. Int. J. Prod. Econ. 120, 437–451 (2009)

    Article  Google Scholar 

  19. Keskin, B., Üster, H., Çetinkaya, S.: Integration of strategic and tactical decisions for vendor selection under capacity constraints. Comp. Oper. Res. 37, 2182–2191 (2010)

    Article  MathSciNet  MATH  Google Scholar 

  20. Ventura, J., Valdebenito, V., Golany, B.: A dynamic inventory model with supplier selection in a serial supply chain structure. Eur. J. Oper. Res. 230, 258–271 (2013)

    Article  MathSciNet  MATH  Google Scholar 

  21. Cárdenas-Barrón, L.E., González-Velarde, J.L., Treviño-Garza, G.: A new approach to solve the multi-product multi-period inventory lot sizing with supplier selection problem. Comp. Oper. Res. 64, 225–232 (2015)

    Article  MathSciNet  Google Scholar 

  22. Glock, C.: A multiple-vendor single-buyer integrated inventory model with a variable number of vendors. Comp. Ind. Eng. 60, 173–182 (2011)

    Article  MathSciNet  Google Scholar 

  23. Ustun, O., Demirtas, E.: An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega 36, 509–521 (2008)

    Article  Google Scholar 

  24. Rezaei, J., Davoodi, M.: Multi-objective models for lot-sizing with supplier selection. Int. J. Prod. Econ. 130, 77–86 (2011)

    Article  Google Scholar 

  25. Huang, Y., Huang, G., Newman, S.: Coordinating pricing and inventory decisions in a multi-level supply chain: a game-theoretic approach. Trans. Res. E 47, 115–129 (2011)

    Article  Google Scholar 

  26. Moin, N., Salhi, S.: Inventory routing problems: a logistical overview. J. Oper. Res. Soc. 58, 1185–1194 (2007)

    Article  MATH  Google Scholar 

  27. Tancrez, J., Lange, C., Semal, P.: A location-inventory model for large three-level supply chains. Trans. Res. E 48, 485–502 (2012)

    Article  Google Scholar 

  28. Melo, M., Nickel, S., da Gama, F.S.: A tabu search heuristic for redesigning a multi-echelon supply chain network over a planning horizon. Int. J. Prod. Econ. 136, 218–230 (2012)

    Article  Google Scholar 

  29. Andersson, H., Hoff, A., Christiansen, M., Hasle, G., Løkketangen, A.: Industrial aspects and literature survey: combined inventory management and routing. Comp. Oper. Res. 37, 1515–1536 (2010)

    Article  MathSciNet  MATH  Google Scholar 

  30. Coelho, L.C., Cordeau, J.F., Laporte, G.: Thirty years of inventory-routing. Trans. Sci. 48, 1–19 (2014)

    Article  Google Scholar 

  31. Yu, Y., Chen, H., Chu, F.: A new model and hybrid approach for large scale inventory routing problems. Eur. J. Oper. Res. 189, 1022–1040 (2008)

    Article  MATH  Google Scholar 

  32. Day, J., Wright, P., Schoenherr, T., Venkataramanan, M., Gaudette, K.: Improving routing and scheduling decisions at a distributor of industrial gasses. Omega 37, 227–237 (2009)

    Article  Google Scholar 

  33. Coelho, L., Laporte, G.: Improved solutions for inventory-routing problems through valid inequalities and input ordering. Int. J. Prod. Econ. 155, 391–397 (2014)

    Article  Google Scholar 

  34. Berman, O., Wang, Q.: Inbound logistic planning: minimizing transportation and inventory cost. Trans. Sci. 40, 287–299 (2006)

    Article  Google Scholar 

  35. Kuhn, H., Liske, T.: Simultaneous supply and production planning. Int. J. Prod. Res. 49, 3795–3813 (2011)

    Article  Google Scholar 

  36. Song, J., Savelsbergh, M.: Performance measurement for inventory routing. Trans. Sci. 41, 44–54 (2007)

    Article  Google Scholar 

  37. Ambrosino, D., Scutellà, M.: Distribution network design: new problems and related models. Eur. J. Oper. Res. 165, 610–624 (2005)

    Article  MathSciNet  MATH  Google Scholar 

  38. Melo, M., Nickel, S., da Gama, F.S.: Dynamic multi-commodity capacitated facility location: a mathematical modeling framework for strategic supply chain planning. Comp. Oper. Res. 33, 181–208 (2005)

    Article  MATH  Google Scholar 

  39. Hinojosa, Y., Kalcsics, J., Nickel, S., Puerto, J., Velten, S.: Dynamic supply chain design with inventory. Comp. Oper. Res. 35, 373–391 (2008)

    Article  MathSciNet  MATH  Google Scholar 

  40. Thanh, P., Bostel, N., Péton, O.: A dynamic model for facility location in the design of complex supply chains. Int. J. Prod. Econ. 113, 678–693 (2008)

    Article  Google Scholar 

  41. Manzini, R., Bindi, F.: Strategic design and operational management optimization of a multi stage physical distribution system. Trans. Res. E 45, 915–936 (2009)

    Article  Google Scholar 

  42. Sadjady, H., Davoudpour, H.: Two-echelon, multi-commodity supply chain network design with mode selection, lead-times and inventory costs. Comp. Oper. Res. 39, 1345–1354 (2012)

    Article  MathSciNet  MATH  Google Scholar 

  43. Guerrero, W., Prodhon, C., Velasco, N., Amaya, C.: Hybrid heuristic for the inventory location-routing problem with deterministic demand. Int. J. Prod. Eco. 146, 359–370 (2013)

    Article  Google Scholar 

  44. Mula, J., Peidro, D., Díaz-Madroñero, M., Vicens, E.: Mathematical programming models for supply chain production and transport planning. Eur. J. Oper. Res. 204, 377–390 (2010)

    Article  MathSciNet  MATH  Google Scholar 

  45. Díaz-Madroñero, M., Peidro, D., Mula, J.: A review of tactical optimization models for integrated production and transport routing planning decisions. Comp. Ind. Eng. 88, 518–535 (2015)

    Article  Google Scholar 

  46. Fahimnia, B., Farahani, R., Marian, R., Luong, L.: A review and critique on integrated production-distribution planning models and techniques. J. Manuf. Sys. 32, 1–19 (2013)

    Article  Google Scholar 

  47. Adulyasak, Y., Cordeau, J., Jans, R.: The production routing problem: a review of formulations and solution algorithms. Comp. Oper. Res. 55, 141–152 (2015)

    Article  MathSciNet  MATH  Google Scholar 

  48. Elhedhli, S., Goffin, J.: Efficient production-distribution system design. Manag. Sci. 51, 1151–1164 (2005)

    Article  MATH  Google Scholar 

  49. Manzini, R.: A top-down approach and a decision support system for the design and management of logistic networks. Trans. Res. E 48, 1185–1204 (2012)

    Article  Google Scholar 

  50. Raa, B., Dullaert, W., Aghezzaf, E.: A matheuristic for aggregate production-distribution planning with mould sharing. Int. J. Prod. Econ. 145, 29–37 (2013)

    Article  Google Scholar 

  51. Low, C., Chang, C.M., Li, R.K., Huang, C.L.: Coordination of production scheduling and delivery problems with heterogeneous fleet. Int. J. Prod. Econ. 153, 139–148 (2014)

    Article  Google Scholar 

  52. Liu, S., Papageorgiou, L.: Multiobjective optimisation of production, distribution and capacity planning of global supply chains in the process industry. Omega 41, 369–382 (2013)

    Article  Google Scholar 

  53. Chan, F., Chung, S., Wadhwa, S.: A hybrid genetic algorithm for production and distribution. Omega 33, 345–355 (2005)

    Article  Google Scholar 

  54. Dawande, M., Geismar, H.N., Hall, N., Chelliah, S.: Supply chain scheduling: distribution systems. Prod. Oper. Manag. 15, 243–261 (2006)

    Article  Google Scholar 

  55. Selim, H., Araz, C., Ozkarahan, I.: Collaborative production-distribution planning in supply chain: a fuzzy goal programming approach. Trans. Res. E 44, 396–419 (2008)

    Article  Google Scholar 

  56. Calvete, H.I., Galé, C., Iranzo, J.A.: Planning of a decentralized distribution network using bilevel optimization. Omega 49, 30–41 (2014)

    Article  Google Scholar 

  57. Amorim, P., Günther, H.O., Almada-Lobo, B.: Multi-objective integrated production and distribution planning of perishable products. Int. J. Prod. Econ. 138, 89–101 (2012)

    Article  Google Scholar 

  58. Kampstra, R., Ashayeri, J., Gattorna, J.: Realities of supply chain collaboration. Int. J. Logis. Manag. 17, 312–330 (2006)

    Article  Google Scholar 

  59. Huang, G., Lau, J., Mak, K.: The impacts of sharing production information on supply chain dynamics: a review of the literature. Int. J. Prod. Res. 41, 1483–1517 (2003)

    Article  Google Scholar 

  60. Kalcsics, J., Nickel, S., Puerto, J., Rodríguez-Chía, A.M.: Distribution systems design with role dependent objectives. Eur. J. Oper. Res. 202, 491–501 (2010)

    Article  MathSciNet  MATH  Google Scholar 

  61. Bertazzi, L., Paletta, G., Speranza, M.G.: Deterministic order-up-to level policies in an inventory routing problem. Trans. Sci. 36, 119–132 (2002)

    Article  MATH  Google Scholar 

  62. Cao, D., Chen, M.: Capacitated plant selection in a decentralized manufacturing environment: a bilevel optimization approach. Eur. J. Oper. Res. 169, 97–110 (2006)

    Article  MathSciNet  MATH  Google Scholar 

  63. Calvete, H.I., Galé, C., Oliveros, M.J.: Bilevel model for production-distribution planning solved by using ant colony optimization. Comp. Oper. Res. 38, 320–327 (2011)

    Article  MATH  Google Scholar 

Download references

Acknowledgments

This research work has been partially funded by the Gobierno de Aragón under grant E58 (FSE).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Carmen Galé .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this paper

Cite this paper

Calvete, H.I., Galé, C., Polo, L. (2016). Integrated Supply Chain Planning: A Review. In: León, R., Muñoz-Torres, M., Moneva, J. (eds) Modeling and Simulation in Engineering, Economics and Management. MS 2016. Lecture Notes in Business Information Processing, vol 254. Springer, Cham. https://doi.org/10.1007/978-3-319-40506-3_10

Download citation

Publish with us

Policies and ethics