Joint production-planning and distribution optimization of perishable products under a combined shipment structure: A new hybrid policy-based approach

Document Type : Article

Authors

Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

Abstract

Following the need for joint optimization of decisions in supply chains, this paper newly provides an integrated framework to efficiently fulfill a production-planning-routing problem (PPRP). In such integrated scheme, a set of perishable family-products are manufactured on a single batch-processing machine. These products are dispatched to the customers by a third-party logistics service provider with only two types of licensed eco-friendly transportation facilities. In order to efficiently deliver the manufactured products before they become unusable, we propose a combined shipment structure. To accomplish this, we formulate the problem in the context of a MILP model. In particular, we aim to establish two manufacturing policies based on both increasing and decreasing rates of production and also two delivery policies expressing distinct preferences in fulfilling the customers’ demands. In this regards, we investigate the cost structures obtained from the established integrated planning and the resulting distribution configurations as well. Further, four heuristic algorithms are developed for solving the problem with respect to each hybrid production/distribution scheme derived from the former policies. Finally, to compare the mentioned procedures, it is conducted a numerical study illustrating the preferable efficiency of the plan gained according to the hybrid of the increasing-production-rate and decreasing-delivery-distance policies.

Keywords

References

References:
1. Cheng, B.Y., Leung, J.Y., and Li, K. "Integrated scheduling on a batch machine to minimize production, inventory and distribution costs", European Journal of Operational Research, 258(1), pp. 104-112 (2017).
2. Wang, D.Y., Grunder, O., and Moudni, A.E. "Integrated scheduling of production and distribution operations: a review", International Journal of Industrial and Systems Engineering, 19(1), pp. 94-122 (2014).
3. Reimann, M., Tavares Neto, R., and Bogendorfer, E. "Joint optimization of production planning and vehicle routing problems: A review of existing strategies", Pesquisa Operacional, 34(2), pp. 189-214 (2014).
4. Biuki, M., Kazemi, A., and Alinezhad, A. "An integrated location-routing-inventory model for sustainable design of a perishable products supply chain network", Journal of Cleaner Production, 260, pp. 1- 14 (2020).
5. Armentano, V.A., Shiguemoto, A.L., and Lkketangen, A. "Tabu search with path relinking for an integrated production-distribution problem", Computers and Operations Research, 38(8), pp. 1199-1209 (2011).
6. Cakici, E., Mason, S.J., and Kurz, M.E. "Multiobjective analysis of an integrated supply chain scheduling problem", International Journal of Production Research, 50(10), pp. 2624-2638 (2012).
7. Bilgen, B. and Celebi, Y. "Integrated production scheduling and distribution planning in dairy supply chain by hybrid modeling", Annals of Operations Research, 211(1), pp. 55-82 (2013).
8. Salmasnia, A. and Talesh-Kazemi, A. "Integrating inventory planning, pricing and maintenance for perishable products in a two-component parallel manufacturing system with common cause failures", Operational Research, 22(2), pp. 1235-1265 (2022).
9. Li, K., Zhou, C., Leung, J.Y., et al. "Integrated production and delivery with single machine and multiple vehicles", Expert Systems with Applications, 57, pp. 12-20 (2016).
10. Garcia, J.M., Lozano, S., and Canca, D. "Coordinated scheduling of production and delivery from multiple plants", Robotics and Computer-Integrated Manufacturing, 20(3), pp. 191-198 (2004).
11. Li, W., and Ferrell, W.G. "Integrated production and distribution schedule problem with a perishable product", IIE Annual Conference, Proceedings, Institute of Industrial and Systems Engineers (IISE), pp. 1-7 (2011).
12. Li, W. and Ling, Z. "A Heuristic method for the integrated production distribution problem", IIE Annual Conference, Proceedings, Institute of Industrial and Systems Engineers (IISE), pp. 3027-3034 (2015).
13. Low, C., Li, R.K., and Chang, C.M. "Integrated scheduling of production and delivery with time windows", International Journal of Production Research, 51(3), pp. 897-909 (2013).
14. Marandi, F. and Zegordi, S.H. "Integrated production and distribution scheduling for perishable products", Scientia Iranica, 24(4), pp. 2105-2118 (2017).
15. Hsu, C.I., Hung, S.F., and Li, H.C. "Vehicle routing problem with time-windows for perishable food delivery", Journal of Food Engineering, 80(2), pp. 465-475 (2007).
16. Lacomme, P., Moukrim, A., Quilliot, A., et al. "Supply chain optimisation with both production and transportation integration: multiple vehicles for a single perishable product", International Journal of Production Research, pp. 1-24 (2018).
17. Rafiei, H., Safaei, F., and Rabbani, M. "Integrated production-distribution planning problem in a competition-based four-echelon supply chain", Computers and Industrial Engineering, 119, pp. 85-99 (2018).
18. Gupta, V., Grossmann, I.E., Pathak, S., et al. "Assessing the benefits of production-distribution coordination in an industrial gases supply chain", Proceedings of FOCAPO, Savannah, (Eds. Sahinidis, NV and JM Pinto), pp. 1-6 (2012).
19. Yaghin, R.G. "Integrated multi-site aggregate production-pricing planning in a two-echelon supply chain with multiple demand classes", Applied Mathematical Modelling, 53, pp. 276-295 (2018).
20. Armstrong, R., Gao, S., and Lei, L. "A zero-inventory production and distribution problem with a fixed customer sequence", Annals of Operations Research, 159(1), pp. 395-414 (2008).
21. Zhang, J., Wang, X., and Huang, K. "Integrated online scheduling of order batching and delivery under B2C ecommerce", Computers and Industrial Engineering, 94, pp. 280-289 (2016).
22. Li, K., Zhou, C., Leung, J.Y., et al. "Integrated production and delivery with single machine and multiple vehicles", Expert Systems with Applications, 57, pp. 12-20 (2016).
23. Toptal, A., Koc, U., and Sabuncuoglu, I. "A joint production and transportation planning problem with heterogeneous vehicles", Journal of the Operational Research Society, 65(2), pp. 180-196 (2014).
24. Aras, N. and Bilge, U. "Robust supply chain network design with multi-products for a company in the food sector", Applied Mathematical Modelling, 60, pp. 526- 539 (2018).
25. Maihami, R., Ghalehkhondabi, I., and Ahmadi, E. "Pricing and inventory planning for non-instantaneous deteriorating products with greening investment: A case study in beef industry", Journal of Cleaner Production, 295, pp. 1-17 (2021).
26. Hatami-Marbini, A., Sajadi, S.M., and Malekpour, H. "Optimal control and simulation for production planning of network failure-prone manufacturing systems with perishable goods", Computers and Industrial Engineering, 146, pp. 1-10 (2020).
27. Rezaei, S. and Maihami, R. "Optimizing the sustainable decisions in a multi-echelon closed-loop supply chain of the manufacturing/remanufacturing products with a competitive environment", Environment, Development and Sustainability, 22(7), pp. 6445-6471 (2020).
28. Guarnaschelli, A., Salomone, H.E., and Mendez, C.A. "A stochastic approach for integrated production and distribution planning in dairy supply chains", Computers and Chemical Engineering, 140, pp. 1-22 (2020).
29. Fatemi Ghomi, S.M.T., Karimi, B., Behnamian, J., et al. "A multi-objective particle swarm optimization based on pareto archive for integrated production and distribution planning in a green supply chain", Applied Artificial Intelligence, 35(2), pp. 133-153 (2021).
30. Bank, M., Mazdeh, M.M., Heydari, M., et al. "Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost", Kybernetes, pp. 1-14 (2021).
31. Gruson, M., Bazrafshan, M., Cordeau, J.F., et al. "A comparison of formulations for a three-level lot sizing and replenishment problem with a distribution structure", Computers and Operations Research, 111, pp. 297-310 (2019).
32. Ghadimi, F. and Aouam, T. "Planning capacity and safety stocks in a serial production-distribution system with multiple products", European Journal of Operational Research, 289(2), pp. 533-552 (2021).
33. Wu, W., Zhou, W., Lin, Y., et al. "A hybrid metaheuristic algorithm for location inventory routing problem with time windows and fuel consumption", Expert Systems with Applications, 166, pp. 1-16 (2021).
Scientia Iranica
Volume 31, Issue 6 - Serial Number 6
March and April 2024
Pages 481-499

Files

Share

How to cite

Statistics