Production and distribution planning with direct shipment and multi-trips

Rachida Benfedel, Fayçal Belkaid and Nadjib Brahimi
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Rachida Benfedel: Université de Tlemcen = University of Tlemcen, ESC [Rennes] - ESC Rennes School of Business
Fayçal Belkaid: Université de Tlemcen = University of Tlemcen
Nadjib Brahimi: ESC [Rennes] - ESC Rennes School of Business

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Abstract: This collaborative study with a company manufacturing Personal Protective Equipment (PPE) aimed to optimize production planning and distribution processes to minimize total costs. The company operates a manufacturing center with two production units, each specializing in a specific type of PPE and using a fleet of homogeneous trucks for direct shipment to the warehouse and several retailers. The problem consists of minimizing the overall cost of manufacturing, inventory, and transportation while considering factors such as production unit capacity, inventory levels, delivery requirements, and vehicle capacity. We have modeled the problem as a multi-product lot-sizing problem with multi-trip direct shipment. To solve this optimization problem, we have proposed a mixed-integer linear programming (MILP) formulation followed by an efficient hybrid simulated annealing algorithm. The performance of the hybrid simulated annealing meta-heuristic was analyzed by comparing its results with those of the MILP formulation, which was solved using a state-of-the-art commercial solver. Numerical experiments were conducted on real data from the PPE manufacturer and data sets adapted from existing literature. Results show that the hybrid simulated annealing heuristic achieves costs that are up to 3.74% lower than those obtained using the commercial solver (for the same CPU times). Furthermore, we tested our solution approach on actual instances specifically designed for the company. Our integrated approach achieves a significant cost reduction compared to the company's existing solution. Our results provide valuable insights for managers seeking to reduce costs while maintaining delivery efficiency.

Keywords: Integrated optimization; Lot sizing problem; direct shipment; Multi-trip; Mixed integer programming; hybrid simulated annealing; Personal protection equipment (search for similar items in EconPapers)
Date: 2025
Note: View the original document on HAL open archive server: https://hal.science/hal-05059003v1
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Published in Journal of Industrial and Management Optimization, 2025, 21 (5), pp.3960-3984. ⟨10.3934/jimo.2025038⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05059003

DOI: 10.3934/jimo.2025038

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