Supply Chain Management In The Integrated Production And Transportation Scheduling Problem Research

Production and transportation both plays important role in the supply chain management, and their integration could great enhance operational efficiency for supply chain. In the past two decades, lots of literatures have validated this advantage on the level of strategy and tactis. Nevertheless, modern supply chain management tends to be more and more sophisticated; we also need special and concrete research on the level of practise and operation. Customers have much more alternative goods for the serious market competition in modern life. They prefer to those service and products which could satisfy their special and distinct requirements well. In this paper, we studied how enterprise intergrate production and transportation scheduling to efficiently cut transportation cost and improve service level in the operation mode of making to order. The problem can be described in detail as follows:a series of orders from customers allocated in different places are generated at a special time. Then they would be manufactured and handled firstly in a production factory, and delivered to their corresponding customers later. The objective would be the determination of process schedule and transportation route for orders, maximizeing the level of customer service and minimizing the cost of transportation route. In the target, the level of customer service is decided by a function of order arrival time, and the cost of transportation route is composed of fixed cost and variable cost, which are decided by transportation frequency and route respectively. The main works comprise following two parts:we studies the integrated production and transportation scheduling problem with limited transportation resources and estabilished two integrated production and transportation scheduling models with single vehicle, multiple customers and multiple vehicles, multiple customers. We also proposed their solution algorithm with dynamic programming. In addition, we use an instance of production and transportation in Hunan Hllianyuan Steel Corporation to investigate the possible benefit of using the integrated model compared with results using separately production and transportation scheduling approach. The comparartion analysis verified the significant effects of integrated scheduling model. A further simulation experiment with large scale data showed that this priority would be more remarkable through the increase of weight value, customer numbers, and vehicle capacity.