Manufacturing Logistics and Supply Chain: Relationship and Economic Importance

Abstract

Abstract:The Supply Chain (SC) describes the succession of suppliers, manufacturers, storage facilities, distributors and customers that allow products to be ordered, produced and delivered. Supply-Chain Management (SCM) is another aspect of Advanced Planning and Scheduling. It administers the flow of supplies, logistics, services and information through the supply-chain, from suppliers, manufacturers, sub-contractors, stores and distributors to customers and end-users. It involves business strategy, information flow and systems compatibility. Manufacturing is the activity consisting in to make a good with tools and/or machines by effecting chemical, mechanical, or physical transformation of materials, substances, or components, or by simulating natural processes, usually repeatedly and on a large scale with a division of labor. Due to the economic and strategic importance of knowing in advance the client's needs to develop the master production planning, we propose in this paper a mathematical model to link the activities of the supply chain with the development of the master plan of production using a mixed integer linear programming model with a stochastic approach. In our proposal we include a set of constrains tha represents the real necessities of the customers in markets of high density.