Title :
Integrated optimization of production and distribution for several products
Author :
Boudia, Mourad ; Dauzère-Pérès, Stéphane ; Prins, Christian ; Louly, Mohamed Aly O
Author_Institution :
Inst. Charles Delaunay, Univ. of Technol. of Troyes
Abstract :
This paper proposes an integrated approach for optimizing production, inventory and distribution in a multi-period, multi-item and less-than-truckload configuration. The value of coordinating production with distribution is investigated. The objective is to minimize the sum of setup production costs, holding costs and distribution costs on the planning horizon. An iterative approach is developed for this NP-hard problem. A first production plan is obtained using integer linear programming and the distribution plan (set of vehicle trips in each period) is built using a tabu search metaheuristic that does not change the production plan. In the following iteration, an improved production plan is first determined considering the distribution plan of the previous interaction as a constraint. Then, a new distribution plan is computed given the new production plan. This iterative process stops when the two plans become stable. The iterative method is evaluated on a set of randomly generated instances. The impact of various parameters is evaluated. A comparison with a classical two-phase method shows significant savings ranging from 3.50% to 27.73%. These results underline the relevance of integrating distribution and production planning decisions
Keywords :
integer programming; linear programming; production planning; search problems; transportation; NP-hard problem; integer linear programming; production distribution; production optimization; production planning; tabu search; Capacity planning; Costs; Iterative methods; Manufacturing; NP-hard problem; Optimized production technology; Production planning; Routing; Supply chains; Vehicles; Production planning; coordination; tabu search; vehicle routing;
Conference_Titel :
Service Systems and Service Management, 2006 International Conference on
Conference_Location :
Troyes
Print_ISBN :
1-4244-0450-9
Electronic_ISBN :
1-4244-0451-7
DOI :
10.1109/ICSSSM.2006.320625