The network design problem is one of the most comprehensive strategic
decision issues that need to be optimized for the long-term efficient operation of
whole supply chain. The problem treated in this thesis is a capacitated location
allocation planning of distribution centers for the distribution network design. The
distribution network in this research is considered from plants to distribution
centers and distribution centers to demand points. The research will explore the
optimal number and locations of cement distribution center of “X” cement
industry in Myanmar. The Mixed Integer Linear Programming (MILP) was
developed as a tool to solve optimization problem which involves 3
manufacturing plants, 6 distribution centers and 6 market regions. The data
collection was done by the company. The (MILP) model provides useful
information for the Company about which distribution centers should be opened
and what would be the best distribution network in order to maximize profit while
still satisfies the customers’ demand. In this study, we proposed three scenarios
which are scenario two, six and eight. In all scenarios, the solution was to have
only two distribution centers from Mandalay and Meikhtila markets are
recommended to open in the distribution network
