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A Hybrid Algorithm for Simultaneous Scheduling of Production and Distribution in Multi-Echelon Structures

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  • Jack F. Williams

    (University of Wyoming)

Abstract

This paper presents a dynamic programming algorithm for simultaneous determination of production batch sizes in an assembly network and distribution batch sizes in a conjoined distribution ("arborescent") network. The objective is to minimize average cost per period over an infinite horizon. Costs consist of processing costs at each node and linear holding costs for inventory. Final product demand rates may vary among the retail nodes, but at each retail node the demand rate is assumed to be known, constant, and continuous. All demand must be met; backorders are not permitted. The model can be used for a single product, or for several products that are temporarily combined for distribution, or for scheduling production in a system where several end products are produced from the same intermediate product, as in some biochemical manufacturing processes.

Suggested Citation

  • Jack F. Williams, 1983. "A Hybrid Algorithm for Simultaneous Scheduling of Production and Distribution in Multi-Echelon Structures," Management Science, INFORMS, vol. 29(1), pages 77-92, January.
    • Handle: RePEc:inm:ormnsc:v:29:y:1983:i:1:p:77-92
    DOI: 10.1287/mnsc.29.1.77
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    Cited by:

    1. Abdul-Jalbar, Beatriz & Gutierrez, Jose M. & Sicilia, Joaquin, 2007. "An integrated inventory model for the single-vendor two-buyer problem," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 246-258, July.
    2. Abdul-Jalbar, Beatriz & Gutiérrez, José M. & Sicilia, Joaquín, 2009. "A two-echelon inventory/distribution system with power demand pattern and backorders," International Journal of Production Economics, Elsevier, vol. 122(2), pages 519-524, December.
    3. Esaignani Selvarajah & George Steiner, 2009. "Approximation Algorithms for the Supplier's Supply Chain Scheduling Problem to Minimize Delivery and Inventory Holding Costs," Operations Research, INFORMS, vol. 57(2), pages 426-438, April.
    4. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    5. Abdul-Jalbar, B. & Gutierrez, J. & Sicilia, J., 2005. "Integer-ratio policies for distribution/inventory systems," International Journal of Production Economics, Elsevier, vol. 93(1), pages 407-415, January.

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