  The increase in customer expectation in terms of cost and services rendered,
coupled with competitive business environment and uncertainty in cost of raw
materials have posed challenges on effective supply chain engineering making it
essential to do cost-benefit analysis before making final decisions on
production distribution logistics. This paper provides a conceptual model that
provide guidance in supply chain decision making for business expansion. It
presents a mathematical model for production-distribution of an integrated
supply chain derived from current operations of SBC Tanzania Ltd which is a
major supply chain that manages products' distribution in whole of Tanzania. In
addition to finding the optimal cost, we also carried out a sensitivity
analysis on the model so as to find ways in which the company can expand at
optimal cost, while meeting customers' demands. Genetic algorithms is used to
run the simulation for their efficient in solving combinatorial problems.
