A SIMULATION MODEL FOR INTEGRATED PRODUCTION - DISTRIBUTION PROBLEM

The approach of production-distribution integration problem using analytical model lacks of ability to accommodate supply chain uncertainty such as delay, queuing, machine breakdown, vehicle breakdown, operator work consistency, and environmental factor. The purpose of this research is to develop a simulation model that accommodates multiple uncertainty factors in order to generate production and distribution plan which not only minimize production and distribution cost but also feasible to be implemented in real life. The simulation model is designed using ARENA software to picture the production and distribution process for three periods in a supply chain consist of two factories and five distribution center by direct shipment. The stochastic simulation result shows the total time required to produce and deliver according to production-distribution planning for period one and two are higher than 48 available hours and concluded that previous analytical model solution is not feasible to be implemented and thus has to adjust the capacity