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PRODUCTION‐DISTRIBUTION PLANNING IN A LARGE SCALE COMMODITY PROCESSING NETWORK
Author(s) -
Markland Robert E.,
Newett Robert J.
Publication year - 1976
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1976.tb00703.x
Subject(s) - commodity , production (economics) , time horizon , computer science , scale (ratio) , operations research , economics , industrial engineering , microeconomics , mathematics , engineering , finance , physics , quantum mechanics
This paper describes a methodology for production‐distribution planning in a large scale commodity processing network. Based on earlier research efforts dealing with single‐commodity and multi‐commodity distribution system modeling and on production planning for a single‐plant commodity processing facility, a mathematical programming methodology is developed for a multiplant soybean processing network. Application of the model leads to the specification of a production plan for a multi‐period time horizon, while at the same time indicating the quantities of soybean meal and soybean oil to be supplied to various customers in various locales. Both sets of decisions are made under the general criterion of maximizing the net income produced by the soybean processing complex, subject to various production, inventory, capacity, supply and demand constraints. Test results from application of the model are presented and discussed.