Physical Internet-enabled automobile production–distribution joint optimisation with multistage workshop

Abstract

PurposeThe Physical Internet (PI) application in a supply chain is explored by automakers to achieve a digital supply chain to challenge timely delivery while maintaining high customised production at the lowest operating cost.Design/methodology/approachA bi-objective mixed integer model is formulated, where production is performed in multistage manufacturing systems (MMS) and then delivered in a two-level distribution system. Next, a hybrid iterative method algorithm is developed to solve the practical-scale problem within an admissible time. Finally, PI's benefits on production and supply chain operation are discussed through extensive computational experiments in different supply chain configurations.FindingsThree significant findings are obtained. First, PI can achieve a comparable or better service level, while the cost is always lower. Second, PI can improve the utilisation of production and transportation resources. Third, with a more complex supply chain and a higher production cost or truck fixed cost, PI's advantages over traditional supply chain become more vigorous, but the increase in orders will weaken it.Practical implicationsThe auto enterprise should adopt a PI-enabled supply chain (PI-SC), especially with the increase of network complexity and specific cost factors.Social implicationsImportance should be attached to the PI-SC to make customers better involved in the supply chain.Originality/valueFirst, the application of PI in the existing plant is described. Second, MMS production with multi-mode transportation is jointly scheduled. Third, the decision support of the PI-SC is provided for auto enterprises.

Solving the Sustainable Automobile Production-Distribution Joint Optimization in the Physical Internet-Enabled Hyperconnected Order-to-Delivery System by I-NSGAIII

“…single-stage flow-shop and job-shop). Ji et al [4] further investigated the cost optimisation of IPDS with a multi-stage manufacturing system (MMS). Through a limited buffer system, jobs are then transferred sequentially in two workshops.…”

“…Regardless, the above research simplified the production process as the order allocation problem. Ji et al [4] further studied IPDS with PIenabled MMS production configuration, which considers job scheduling in sequentially connected two workshops. However, in this article, the two plants independently perform production, and the significance of production for sustainable management is not explored.…”

“…The assembly schedule must satisfy the limitations of production capacity, production sequence, and production bottlenecks. Constraints (4) indicate that the order a must not be assembled in the plant i at the period t when the plant i does not perform the production at the period t. Constraints (4) also restrict the production capacity of AS for every plant in each period. Constraints (5) further stipulate the transfer of semi-finished products between the plants.…”

“…For auto enterprises, implementing sustainable supply chain management (SSCM) within the framework of government regulations on environmental policies has the highest priority [4]. The order-to-delivery system (OTD) serves as a supply chain platform, connecting the market and manufacturer.…”

“…Auto supply chains with highly modular production processes have huge potential in digital supply chain implementation [2]. Ji et al [4] studied the application of PI and found that a PI-enabled auto supply chain (PI-S) can provide a better service level with less cost compared to a traditional auto supply chain (TS), without considering sustainability. However, their study only investigated the advantages of transparency from the tracking function of PI, owing to existing limitations in the infrastructure and ignoring the hyperconnected distribution brought by PI.…”