Model of Integrated Production Allocation for Minimizing Distribution Costs in a Cement Company

This paper, in order to get a gain after the acquisition process with whose carry out by the company and the competitor. Post-Acquisition, to analyse getting better efficiency, to do so a process restructuring in an existing distribution network is consolidated and integrated by the existing distribution network with the distribution network of the newly acquired company in supply chain management. The acquisition process is expected to expand the network in the domestic market and increase the efficiency of supply chain costs by planning production allocations in an effort to optimize distribution costs more efficiently. The purpose of this work is to determine the optimal configuration of production and distribution networks with operational and financial constraints. A linear programming model is proposed to describe and to optimize the problem. By considering various parameters of the model such as plant capacity, production costs, and distribution costs, this model is hoping to be able for determining where the production of cement facilities is carried out to meet the demand for cement in the market to obtain more efficient distribution costs.