An optimization model for demand-driven distribution resource planning DDDRP

Purpose: Demand-Driven Distribution Resource Planning (DDDRP) has recently been proposed in the literature to deal with higher supply networks complexity, shorter customer tolerance times, and inaccurate forecasts. The DDDRP requires position inventory buffers critical network nodes, where level each buffer is replenished based on actual demands rather than demand This paper aims identify optimal positions a distribution driven by approach assess performance of compared conventional (DRP) approach.Design/methodology/approach: First, mixed-integer non-linear model optimize positioning under constraints objective minimizing chain holding costs. Then, case study investigated validate optimization evaluate optimized approach, DRP approach.Findings: Results considered demonstrate that achieves savings 75% terms total costs 67% amounts, approach.Research limitations/implications: this cannot be generalized since several assumptions have considered. Thus, addressing real studies different industrial contexts may theoretical practical interest.Originality/value: first propose mathematical approach.