Integration in Logistics Planning and Optimization

Publisher:
Elsevier
Publication Type:
Chapter
Citation:
Logistics Operations and Management: Concepts and Models, 2011, 1, pp. 371 - 391
Issue Date:
2011-01
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Logistics planning is concerned with the integration of activities for utilizing suppliers, manufacturers, warehouses, and retailers in order to produce and deliver products at the right quantities and at the right time while minimizing overall system costs and satisfying customer requirements. Optimization of activities within the procurement, production, and distribution subsystems of a logistics system does not guarantee the global optimization, and this has driven recent movement toward more integrated logistics planning approaches. This chapter first highlights the significance of integration in logistics planning and identifies the key issues in this area. Second, a complex integrated logistics planning model is formulated in this chapter. Following a discussion on the available tools and techniques for the optimization of complex large-scale logistics planning problems, genetic algorithms are chosen for the optimization of the proposed integrated model. A medium-sized case study is finally presented to demonstrate the capability of the developed optimization model in achieving the global optimal solution.
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