Study On Coordination And Optimization Of SB Company Multi-plants Production

This paper researches on multi-plants production planning of SB Company. This company provides 5 kinds of products to 8 distributors areas from their 8 plants. As different plants have different cost on production and inventory hold, and transportation cost is variable to different distributors area, the import duty is quite different as well. Furthermore, different plants have different capability and capacity, the product combination of demand from different distributors is quite different, so the problem belongs to multi-products, multi-plants and multi-distributors planning coordination and optimization of supply chain.After understanding the base information and current production plan of SB Company, the production planning is still in manual without assistant tools, and bases on the experience of planners. The supply chain cost is not considering factor during planning, but calculated by finance after plan is done. Through analysis on cost of plants production, inventory hold, transportation and import duty, as well as plants'capability and capacity, distributors demand plan etc. A mathematical model is raised to coordinate and optimize multi-plants production plan via computer software support, to maximize company profit and implement quantitative management on supply chain.During investigation, paper consults to professional researches on multi-products, multi-plants and multi-distributors planning from both internal and international experts. By analyzing multi-plants production planning constraint conditions, like capacity, material flow balance, supply-demand match and on time delivery, a modeling idea adaptable to SB Company is formed, and the corresponding model on multi- plants production planning is established. This model objective is to gain best total cost during a certain planning period and meet all distributors demand.After modeling, the optimal production planning results can be obtained by using LINGO software. The comparison of results between program and manual scheduling shows calculating speed promotion, and reduce total supply chain cost. It shows that it can be a satisfactory solution and good to apply quantitative management for SB on supply chain.