Abstract: As for assembly industry, performance of supply chain is directly decided by the level of logistics management. Bosed on the setting of Supply Hub,the production and distribution issues of every node in an assembly system are studied. Therefore, the production-distribution system is mathematically modeled and solved by programming software. By doing so, the optimal production interval of suppliers and manufacturer, and distribution frequency of parts, as well as the purchase cycle of retailer are got. The comparative analysis between traditional logistics mode and synchronous logistics mode is also taken. It is concluded that: the assembly system based on synchronous logistics can generate lower total average cost because of inventory cost reduction. In the supply chain with synchronous logistics, suppliers and manufacturer produce and distribute more frequently. Although the total cost is reduced, more setup cost results in the increase of cost for manufacturer, which indicates participants should do well in cooperation and negotiation in order to make win-win.

Key words: synchronous logistics, supply hub, assembly system, JIT manufacturing and distribution