An integrated production scheduling and delivery route planning with multi-purpose machines: A case study from a furniture manufacturing company

S. Mohammadi, S. Al-E-Hashem and Yacine Rekik ()
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S. Mohammadi: AUT - Amirkabir University of Technology
S. Al-E-Hashem: ESC [Rennes] - ESC Rennes School of Business
Yacine Rekik: EM - EMLyon Business School, DISP - Décision et Information pour les Systèmes de Production - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées

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Abstract: Recently, many modern industries have adopted joint scheduling of production and distribution decisions. Such coordination is necessary in make-to-order (MTO) businesses, where it is challenging to achieve timely delivery at minimum total cost and meet the requirements for high customization. To deal with these challenges, a practical production configuration and delivery method is required, in addition to a closer link between production and distribution schedules. Hence, in this study, we address an integrated production scheduling-vehicle routing problem with a time window, where it is assumed that production is performed in a flexible job-shop system. Our framework is modeled as a novel bi-objective mixed integer problem, in which the first objective function aims to minimize a sum of the production and distribution scheduling costs, and the second objective function tries to minimize a weighted sum of delivery earliness and tardiness. To practically validate the application of our framework, a case study from a furniture manufacturing company producing customized goods is considered, and experimental data are derived. Based on the real data, the model is first optimally solved by an e-constraint method, and then a Hybrid Particle Swarm Optimization (HPSO) algorithm is developed to solve the model for medium- and large-sized problems in a reasonable time. We discuss the benefits of integration by comparing the results of the proposed model with that of the separate approach. The results show that the company can establish a proper rational balance between cost and customer concerns, and they can use the integration policy as a lever to improve customer satisfaction without the system experiencing a significant increase in total operational cost.

Keywords: ε-constraint method; Hybrid particle swarm optimization algorithm; Integrated production-distribution; Multi-objective optimization; Supply chain scheduling (search for similar items in EconPapers)
Date: 2020-01
Note: View the original document on HAL open archive server: https://rennes-sb.hal.science/hal-02194222v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published in International Journal of Production Economics, 2020, 219 (219), pp.347-359. ⟨10.1016/j.ijpe.2019.05.017⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02194222

DOI: 10.1016/j.ijpe.2019.05.017

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