System Engineering and Productivity

System Engineering and Productivity

Integrated Supply-Production-Distribution Model with the Aim of Profit Maximization (Case Study: Zimaband Ariafer Factory)

Document Type : Research Paper

Authors
Soodeh Moshiri 1
Alireza Rashidi Komijan 2
1 Corresponding author: M.Sc., Department of Industrial Engineering, Faculty of Industrial Engineering, University of Eyvanekey, Eyvanekey, Iran
2 Assistant Professor, Department of Industrial Engineering, Faculty of Engineering, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran
10.22034/sep.2023.706146
Abstract
In this paper, a mathematical model is created in a multi-period and multi-product system for the Zimaband Ariafer factory, considering the three main levels of the supply chain, through which, after solving it with the GEMS software, the factory's purchasing, production, and distribution plan is determined in detail in order to maximize profit. At the end of the research, a sensitivity analysis of the model is performed to determine the sensitivity of the factory's costs to changes in demand and changes in the maximum supply of raw materials to improve management decisions. Considering the answers obtained from the model and comparing it with the current situation of the factory under study, the effectiveness of the model in optimizing the current situation has been confirmed by the relevant managers. In calculating the costs, the highest cost is related to the purchase cost, which includes about 80% of the total costs, and the lowest cost is related to the cost of maintaining the product with the customer, which only accounts for 0.007% of the total costs. The factory's profit during these 6 days was also calculated to be 5,773,400 Tomans, which, according to the relevant managers, has increased by 28% compared to normal. In this study, due to following the demand-based production policy, the volume of product inventory in the production center and customer centers has decreased by about 28%. The volume of raw material inventory has also decreased by an average of 20%, which will lead to a significant reduction in costs and, as a result, the final price of the products.
Keywords
Integrated model
Integrated purchasing-production-distribution planning
Supply chain

Copyright ©, Soodeh Moshiri, Alireza Rashidi Komijan

 

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

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System Engineering and Productivity
Volume 3, Issue 1 - Serial Number 6
Serial No. 6, Spring Quarterly
Spring 2023
Pages 157-184

  • Receive Date 04 May 2022
  • Revise Date 07 December 2022
  • Accept Date 20 May 2023
  • First Publish Date 22 May 2023
  • Publish Date 22 May 2023