Integrated production-distribution problem resolution using analytical model lacks of
consideration of many uncertainties along supply chain line such as delays, queues, machine
breakdown, vehicle malfunction, and environmental factor. By utilizing simulation as complex
stochastic system modelling, this research aims to develop hybrid analytical-simulation
approach to resolve integrated production-distribution model. Time capacity adjustment is
required if production-distribution plan obtained from analytical model requires longer
production and delivery time than available. The adjustment is using a procedure developed
based on duration obtained from simulation model and is used to obtain adjusted time capacity.
The implementation of hybrid method to resolve integrated production-distribution problem on
two echelon supply chain with 2 factories and 5 Distribution Centre (DC) shows a feasible
solution was obtained on the third iteration.