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Optimizing production and transportation in a commit-to-delivery business mode

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  • Melo, Rafael A.
  • Wolsey, Laurence A.

Abstract

In problems involving the simultaneous optimization of production and transportation, the requirement that an order can only be shipped once its production has been completed is a natural one. One example is a problem of optimizing shipping costs subject to a production capacity constraint studied recently by Stecke and Zhao. Here we present an integer programming formulation for the case in which only completed orders can be shipped that leads to very tight dual bounds and enables one to solve instances of significant size to optimality.

Suggested Citation

  • Melo, Rafael A. & Wolsey, Laurence A., 2010. "Optimizing production and transportation in a commit-to-delivery business mode," European Journal of Operational Research, Elsevier, vol. 203(3), pages 614-618, June.
    • Handle: RePEc:eee:ejores:v:203:y:2010:i:3:p:614-618
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    References listed on IDEAS

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    1. Zhi-Long Chen & George L. Vairaktarakis, 2005. "Integrated Scheduling of Production and Distribution Operations," Management Science, INFORMS, vol. 51(4), pages 614-628, April.
    2. F. Fumero & C. Vercellis, 1999. "Synchronized Development of Production, Inventory, and Distribution Schedules," Transportation Science, INFORMS, vol. 33(3), pages 330-340, August.
    3. de Matta, Renato & Miller, Tan, 2004. "Production and inter-facility transportation scheduling for a process industry," European Journal of Operational Research, Elsevier, vol. 158(1), pages 72-88, October.
    4. Kathryn E. Stecke & Xuying Zhao, 2007. "Production and Transportation Integration for a Make-to-Order Manufacturing Company with a Commit-to-Delivery Business Mode," Manufacturing & Service Operations Management, INFORMS, vol. 9(2), pages 206-224, September.
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    Cited by:

    1. Feng Li & Zhou Xu & Zhi-Long Chen, 2020. "Production and Transportation Integration for Commit-to-Delivery Mode with General Shipping Costs," INFORMS Journal on Computing, INFORMS, vol. 32(4), pages 1012-1029, October.
    2. Feng Li & Zhi-Long Chen & Zhi-Long Chen, 2017. "Integrated Production, Inventory and Delivery Problems: Complexity and Algorithms," INFORMS Journal on Computing, INFORMS, vol. 29(2), pages 232-250, May.
    3. Li, Feng & Xu, Shifu & Xu, Zhou, 2023. "New exact and approximation algorithms for integrated production and transportation scheduling with committed delivery due dates and order acceptance," European Journal of Operational Research, Elsevier, vol. 306(1), pages 127-140.
    4. Han, Dongya & Yang, Yongjian & Wang, Dujuan & Cheng, T.C.E. & Yin, Yunqiang, 2019. "Integrated production, inventory, and outbound distribution operations with fixed departure times in a three-stage supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 334-347.
    5. Simon Thevenin & Nicolas Zufferey & Rémy Glardon, 2017. "Model and metaheuristics for a scheduling problem integrating procurement, sale and distribution decisions," Annals of Operations Research, Springer, vol. 259(1), pages 437-460, December.
    6. Wang, Julong & Liu, Zhixue & Li, Feng, 2024. "Integrated production and transportation scheduling problem under nonlinear cost structures," European Journal of Operational Research, Elsevier, vol. 313(3), pages 883-904.

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