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Economic lot and delivery scheduling problem for multi-stage supply chains

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  • Osman, Hany
  • Demirli, Kudret

Abstract

The economic lot and delivery scheduling problem for a multi-stage supply chain comprising multiple items is studied in this paper. It is required to develop a synchronized replenishment strategy, and specify the sequence of production and the replenishment cycle time that achieves synchronization through the supply chain at minimum cost. The problem is presented in a novel formulation based on the quadratic assignment representation. The common cycle time and the integer multipliers policies are adopted to accomplish the desired synchronization. The two policies are represented by nonlinear models handled through a hybrid algorithm. The algorithm combines linearization, outer approximation and Benders decomposition techniques. Results of the two policies demonstrate that a cost reduction up to16.3% can be attained by employing the integer multipliers policy instead of the common cycle time. Computational experiments show the efficiency of the new formulation and solution algorithm by reaching the optimal solution for large problem instances in short time.

Suggested Citation

  • Osman, Hany & Demirli, Kudret, 2012. "Economic lot and delivery scheduling problem for multi-stage supply chains," International Journal of Production Economics, Elsevier, vol. 136(2), pages 275-286.
  • Handle: RePEc:eee:proeco:v:136:y:2012:i:2:p:275-286
    DOI: 10.1016/j.ijpe.2011.12.001
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    References listed on IDEAS

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    1. Torabi, S.A. & Fatemi Ghomi, S.M.T. & Karimi, B., 2006. "A hybrid genetic algorithm for the finite horizon economic lot and delivery scheduling in supply chains," European Journal of Operational Research, Elsevier, vol. 173(1), pages 173-189, August.
    2. Osman, Hany & Demirli, Kudret, 2010. "A bilinear goal programming model and a modified Benders decomposition algorithm for supply chain reconfiguration and supplier selection," International Journal of Production Economics, Elsevier, vol. 124(1), pages 97-105, March.
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    5. Juho Hahm & Candace Arai Yano, 1995. "The Economic Lot and Delivery Scheduling Problem: Powers of Two Policies," Transportation Science, INFORMS, vol. 29(3), pages 222-241, August.
    6. Jensen, Mikkel T. & Khouja, Moutaz, 2004. "An optimal polynomial time algorithm for the common cycle economic lot and delivery scheduling problem," European Journal of Operational Research, Elsevier, vol. 156(2), pages 305-311, July.
    7. Clausen, Jens & Ju, Suquan, 2006. "A hybrid algorithm for solving the economic lot and delivery scheduling problem in the common cycle case," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1141-1150, December.
    8. M Khouja, 2003. "Synchronization in supply chains: implications for design and management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(9), pages 984-994, September.
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    Cited by:

    1. B.‐Y. Cheng & J.Y.‐T. Leung & K. Li & S.‐L. Yang, 2015. "Single batch machine scheduling with deliveries," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(6), pages 470-482, September.
    2. Liu, Weihua & Wang, Qian & Mao, Qiaomei & Wang, Shuqing & Zhu, Donglei, 2015. "A scheduling model of logistics service supply chain based on the mass customization service and uncertainty of FLSP’s operation time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 189-215.
    3. Kaya, Onur & Kubalı, Deniz & Örmeci, Lerzan, 2013. "A coordinated production and shipment model in a supply chain," International Journal of Production Economics, Elsevier, vol. 143(1), pages 120-131.
    4. Cheng, Ba-Yi & Leung, Joseph Y-T. & Li, Kai, 2017. "Integrated scheduling on a batch machine to minimize production, inventory and distribution costs," European Journal of Operational Research, Elsevier, vol. 258(1), pages 104-112.
    5. Garn, Wolfgang & Aitken, James, 2015. "Agile factorial production for a single manufacturing line with multiple products," European Journal of Operational Research, Elsevier, vol. 245(3), pages 754-766.
    6. T. G. Pradeepmon & Vinay V. Panicker & R. Sridharan, 2021. "A variable neighbourhood search enhanced estimation of distribution algorithm for quadratic assignment problems," OPSEARCH, Springer;Operational Research Society of India, vol. 58(1), pages 203-233, March.

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