Integrated Production-Delivery Lot Sizing Model with Limited Production Capacity and Transportation Cost considering Overtime Work and Maintenance Time

Abstract

An extension of the integrated production-delivery lot sizing model with limited production capacity and transportation cost is investigated. We introduce the factor of overtime work into the model to improve the manufacturer’s production. In addition, when finishing a lot, the manufacturer has maintenance time to maintain and repair equipment for ensuring that the supply chain is operating continuously. By analyzing the integrated model, the solution procedure is provided to determine the optimal delivery and order policy. We conduct a numerical experiment and give sensitive analysis by varying some parameters to illustrate the problem and its solution procedure.

The Single-Vendor Multibuyer Integrated Production-Delivery Model with Production Capacity under Stochastic Lead Time Demand

“…Lin et al [21] formulated a generalized integrated inventory model to investigate the production and delivery policies while incorporating transportation time and capacity utilization. Other related research about integrated inventory model also can be found in the studies of Shahpouri et al [22], Das et al [23], Zhang and Sun [12], and Zhou and Wang [24].…”

“…Step 6: for each chromosome b in population NewPop(iter + 1), calculate its probability prob b using equation (12). en, select some chromosomes having lower probability values in population NewPop(iter + 1) to form a new population NewPop1(iter + 1).…”

“…Many manufacturing enterprises, such as General Motors, Toyota, Ford, and Chrysler, take the same measure to cope with the fierce market competition. Liao and Huang [10], Dominguez et al [11], and Zhang and Sun [12] studied overtime problem in an integrated model under capacity constraints. In this paper, we follow overtime strategy in the integrated model when the vendor's daily production rate is less than the daily demand rate.…”

“…Hariga [37] is one of the first researchers considering the overtime strategy into the model when limited production capacity exists. Recently, based on the model of Shu et al [38], Zhang and Sun [12] took overtime into the single-vendor single-buyer integrated productiondelivery model under the vendor's limited production capacity. In their model, the vendor reserves a time interval to repair and maintain equipment and the transportation cost also cannot be neglected.…”

Pricing and Distribution Strategies of Fresh Agricultural Product Supply Chain considering Substitutes

“…Kangi et al [32] considered the problem of multiproduct production to meet external market demand with limited inventory. Zhang et al [33] studied the problem of mass production and delivery under limited production capacity and transportation conditions. Qing et al [34] studied the capacity allocation of suppliers under different channel structures (retail, direct sales, and dual-channel).…”