A review of integrated analysis of production-distribution systems

This paper reviews recent work on integrated analysis of production-distribution systems, and identifies important areas where further research is needed. By integrated analysis we understand analysis performed on models that integrate decisions of different production and distribution functions for a simultaneous optimization. We review work that explicitly considers the transportation system in the analysis, since we are interested in the following questions: (i) how have logistics aspects been included in the integrated analysis? and (ii) what competitive advantages, if any, have been obtained from the integration of the distribution function to other production functions within a company and among different companies? In our review we also mention whether the work has been done at the strategic level, i.e., if it concerns the design of the distribution system, or at the tactical level, i.e., if it concerns optimization problems for which the characteristics of the distribution system are provided.