Diagnostic Analysis of a Production and Distribution System

Arnoldo C. Hax · Nicolas S. Majluf · Mark Pendrock

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Supply Chain and Inventory Management Management and Optimization Techniques Optimization and Mathematical Programming

Abstract

This paper reports on a diagnostic study completed by a large firm in the consumer goods sector. This study is aimed at evaluating the production and distribution planning system, the quality of the forecasting system, and the existing levels of inventory. Aggregate models are presented to assess opportunities for improvements in those areas. A proposal for the design of a new production and distribution system, that follows a hierarchical approach, is reviewed. Recommendations for managerial actions are discussed.

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References

2010Multicommodity Distribution System Design by Benders Decomposition * † ‡2011The process of problem finding 1976The Purpose of Mathematical Programming is Insight, Not Numbers 1972The Distribution System Simulator 1975Dynamic Simulation of Physical Distribution Systems.

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