A novel integrated production-distribution planning model with conflict and coordination in a supply chain network

In this paper, an integrated production-distribution planning model using bi-level programming is proposed for supply chain management. In the bi-level model, the core firm is the leader in the hierarchal process that decides which plants and warehouses to open to serve customers to minimize total global cost. In the lower level, the production branch and distribution branch managers aim to minimize costs in their respective branches and make decisions based on the core firm’s decisions. A hybrid priority-based two stage genetic algorithm with a fuzzy logic controller algorithm is developed to solve the proposed model. Finally, construction material transportation at the Lancang River Hydropower Base is taken as a real world example to demonstrate the practicality and efficiency of the optimization model and the algorithm.