Integrated production/distribution planning in the supply chain: the Febal case study

Abstract

Purpose

The paper seeks to investigate empirically the criticalities of a production system constrained by distribution, in order to propose a model capable of integrating production and distribution planning for a simultaneous improvement in terms of efficiency and efficacy.

Design/methodology/approach

Starting from an overview of previous works about integrated analysis of a production‐distribution system, an exploratory case study in the Italian industry of modular kitchens has been used, with multiple levels of analysis and multiple data collection methods.

Findings

Three solutions for a better integration of production‐distribution systems are proposed; the solutions are characterized by increasing levels of benefits and complexity. The article focuses on the implementation of the less complex scenario, called “overlapping of selling areas”, proposing a series of algorithms used for the implementation of a software prototype.

Research limitations/implications

The case study has been chosen because it is representative of the assemble to delivery logic, where production is pulled and constrained by distribution, but it may not necessarily reflect all the firm's experiences in the furniture market.

Practical implications

The software prototype, developed on the basis of the proposed algorithms, allows a firm with production planning severely constrained by the distribution process to achieve better performance in terms of level of accomplishment in the delivery date promised and reduction of the lead time of delivery.

Originality/value

This paper proposes effective solutions for customer order‐driven‐production constrained by the distribution process, also offering practical help for managing and automatically assigning orders to transport carriers and for informing customers of the product's delivery date.

Citation

Nonino, F. and Panizzolo, R. (2007), "Integrated production/distribution planning in the supply chain: the Febal case study", Supply Chain Management, Vol. 12 No. 2, pp. 150-163. https://doi.org/10.1108/13598540710737334