Optimization model for a production, inventory, distribution and routing problem in small furniture companies

Author(s)

Miranda, Pedro L. ^[1] ; Morabito, Reinaldo ^[1] ; Ferreira, Deisemara ^[2]

Affiliation

^[1] Univ Fed Sao Carlos, Dept Prod Engn, Sao Carlos, SP - Brazil

^[2] Univ Fed Sao Carlos, Dept Phys Chem & Math, Sorocaba, SP - Brazil

• Document type: Journal article
• Source: Top; v. 26, n. 1, p. 30-67, APR 2018.
• Web of Science Citations: 6

Abstract

Production and distribution are two key decisions in supply chain planning. In order to achieve an effective operational performance, it is important for these two decisions to be integrated, especially in supply chains with low inventory levels. In this paper, we propose a mixed integer programming model to integrate production, inventory, distribution and routing decisions in a single framework. The model was inspired by small Brazilian furniture companies and focuses on production and distribution decisions at an operational level. In particular, we consider a scenario in which only one production line and one vehicle, which makes multiple trips over the planning horizon, are available to produce items and deliver final products, respectively. We also take into account some features rarely considered in the literature, but commonly found in real-world applications, such as producing and stocking multiple items, distribution routes extending over one or more periods, multiple time windows and customers' due dates. Computational tests on a set of randomly generated instances were carried out using a well-known optimization software and six relax-and-fix heuristics, which explore different criteria for partitioning and fixing variables. We also implemented two hybrid heuristics in which an initial solution is first constructed and then fed into the optimization software to improve it. The results showed that one relax-and-fix and the two hybrid heuristics performed better than the solver on the largest instances. (AU)

• FAPESP's process: 10/10133-0 - Cutting, packing, lot-sizing and scheduling problems and their integration in industrial and logistics settings
• Grantee: Reinaldo Morabito Neto
• Support Opportunities: Research Projects - Thematic Grants
• FAPESP's process: 14/10565-8 - Mathematical models and solutions method for the integrated lot-sizing, scheduling and distribution problem with split delivery
• Grantee: Pedro Luis Miranda Lugo
• Support Opportunities: Scholarships in Brazil - Doctorate