A multiple goal linear programming model for coordinated production and logistics planning

Of utmost importance to the firm is the achievement of the most efficient utilization of its available resources while adhering to the restrictions of its economic environment. One of the inherent difficulties with present linear programming formulations of the coordinated production and logisties planning problem is the failure to include the multiple goals intrinsic to the planning of the firm. The model to be presented in this paper will consider three commonly occurring goals of the firm in coordinating production and logistics planning. These are (1) the maximization of total sales revenue for a specific location and customer; (2) the minimization of total production and distribution costs; and finally, (3) the maximization of production for a particular item at a particular location. This model structure will also include capacity, budget, demand and volume constraints for each production facility. The solution technique for this model will be a computerized multiple objective analogue of the revised simplex method.