The production-distribution problem with order acceptance and package delivery: models and algorithm

Abstract

-The production planning and distribution are among the most important decisions in the supply chain. Classically, in this problem, it is assumed that all orders have to produced and separately delivered; while, in practice, an order may be rejected if the cost that it brings to the supply chain exceeds its revenue. Moreover, orders can be delivered in a batch to reduce the related costs. This paper considers the production planning and distribution problem with order acceptance and package delivery to maximize the profit. At first, a new mathematical model based on mixed integer linear programming is developed. Using commercial optimization software, the model can optimally solve small or even medium sized instances. For large instances, a solution method, based on imperialist competitive algorithms, is also proposed. Using numerical experiments, the proposed model and algorithm are evaluated. Key words:The production planning and distribution problem, Order acceptance, Scheduling, The package delivery, Imperialist competitive algorithm The research's topicGenerally, the production planning is done in the shortterm, mid-term and long-term of the three horizons of the time. The scheduling contains: the decision making in related to the production planning in the short-term time horizon which allocates the production capacity to the production targets. Its output is the exact determination of this issue that in which time and on what machine it should be process.Deciding about the good's delivery to the customers that it is a process in the short-term time horizon, -along with the supply and the production issues -is of the important decisions of every production complex. The package delivery is one of the delivery approaches. The delivery process is always done next to the production process. On the other hand, in the cases of we are required to respecting the delivery time determined by the customer, we obligate to coordinating the production program with the delivery requirements. As a result, the production and the delivery decisions are totally related to each other, so it is better that these two issues would be checked as integrated and simultaneous. In considering of the scheduling's issue in the production and the package delivery approach to the delivery subject, the integrated issue will be contain the scheduling simultaneous determination and the package delivery. In the short-term time horizon, the available capacity of the production system is limited and usually is less than the necessary capacity for processing of all of the orders received by the system. So, a correct decision-making for the production planning, in addition to the scheduling determination and the works' implementation sequence, includes the choice of the best orders from the orders' basket received by the system. The approach of the orders' choice from the received orders' basket, is named so-called the order's acceptance. The main idea of this study is presenting of an integrated issue in order to the simultaneous deter...

A dynamic order acceptance and scheduling approach for additive manufacturing on-demand production

“…It is vitally important to appropriately determine which part orders should be accepted and how they should be scheduled simultaneously so as to maximize the average profit-per-unit-time corresponding to the whole makespan. Although the topics of OAS and BPP have been widely studied [11,14,15], to the best of our knowledge, no research has been conducted to address the dynamic OAS problem in production with PBF systems. In this paper, the dynamic OAS problem is defined and mathematically modelled with constraints of orders' arrival time and due date for the first time.…”