Coordinating Order Acceptance and Batch Delivery for an Integrated Supply Chain Scheduling

Authors

1 Industrial and Systems Engineering, Isfahan University of Technology

2 Industrial Engineering, Iran University of Science and Technology

Abstract

This paper develops Order Acceptance for an Integrated Production-Distribution Problem in which Batch Delivery is implemented. The aim of this problem is to coordinate: (1) rejecting some of the orders (2) production scheduling of the accepted orders and (3) batch delivery to maximize Total Net Profit. A Mixed Integer Programming is proposed for the problem. In addition, a hybrid meta-heuristic algorithm is developed. For a quick exploration around a solution, a Local search is proposed. Two simple heuristics for initial population and a heuristic for batching are proposed. Besides, data is generated to evaluate the performance of algorithms and compare with each other based on comprehensive experiments.

Keywords