Production and interplant batch delivery scheduling: Dominance and cooperation

Alessandro Agnetis, Mohamed Ali Aloulou and Liang-Liang Fu

International Journal of Production Economics, 2016, vol. 182, issue C, 38-49

Abstract: In this paper, we consider scheduling problems in a supply chain with two agents, a manufacturer and a third-party logistics (3PL) provider. The manufacturer has to process a set of jobs at the upstream stage and at the downstream stage. The 3PL provider is in charge of transportation of semi-finished products from the upstream stage to the downstream stage. The manufacturer's objective is to minimize makespan Cmax and the 3PL provider's objective is to minimize transportation cost TC. We investigate three scenarios, corresponding to different types of contract: (i) decentralized scenario with strict responsiveness; (ii) decentralized scenario with flexible responsiveness; (iii) centralized (cooperative) scenario. We provide exact polynomial-time algorithms or prove the NP-completeness of the scheduling problems in these three scenarios. Moreover, we evaluate and compare various scenarios through a large set of computational experiments. The results show that cooperation may bring significant benefits to both actors. The benefit for the 3PL provider is particularly high if compared to situations in which the manufacturing sequence is fixed. Also the manufacturer can benefit from relaxing the job-by-job responsiveness constraint in favor of an integrated schedule which appropriately accounts for the role of the 3PL provider.

Keywords: Supply chain scheduling; Batching and delivery; Outsourced distribution; Two delivery modes; Dominance and cooperation; Benefit of cooperation; Fairness (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527316301864
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:182:y:2016:i:c:p:38-49

DOI: 10.1016/j.ijpe.2016.08.007

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().