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Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling

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  • Bilge Bilgen
  • Yelda Çelebi

Abstract

In this paper we address the production scheduling and distribution planning problem in a yoghurt production line of the multi-product dairy plants. A mixed integer linear programming model is developed for the considered problem. The objective function aims to maximize the benefit by considering the shelf life dependent pricing component and costs such as processing, setup, storage, overtime, backlogging, and transportation costs. Key features of the model include sequence dependent setup times, minimum and maximum lot sizes, overtime, shelf life requirements, machine speeds, dedicated production lines, typically arising in the dairy industry. The model obtains the optimal production plan for each product type, on each production line, in each period together with the delivery plan. The hybrid modelling approach is adopted to explore the dynamic behavior of the real world system. In the hybrid approach, operation time is considered as a dynamic factor and it is adjusted by the results of the simulation and optimization model iteratively. Thus, more realistic solutions are obtained for the scheduling problem in yoghurt industry by using the iterative hybrid optimization-simulation procedure. The efficiency and applicability of the proposed model and approach are demonstrated in a case study for a leading dairy manufacturing company in Turkey. Copyright Springer Science+Business Media New York 2013

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  • Bilge Bilgen & Yelda Çelebi, 2013. "Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling," Annals of Operations Research, Springer, vol. 211(1), pages 55-82, December.
    • Handle: RePEc:spr:annopr:v:211:y:2013:i:1:p:55-82:10.1007/s10479-013-1415-3
    DOI: 10.1007/s10479-013-1415-3
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    7. Shirvani, Nargess & Ruiz, Rubén & Shadrokh, Shahram, 2014. "Cyclic scheduling of perishable products in parallel machine with release dates, due dates and deadlines," International Journal of Production Economics, Elsevier, vol. 156(C), pages 1-12.
    8. Sun, X.T. & Chung, S.H. & Chan, Felix T.S., 2015. "Integrated scheduling of a multi-product multi-factory manufacturing system with maritime transport limits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 79(C), pages 110-127.
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