Stochastic multi-period multi-product multi-objective Aggregate Production Planning model in multi-echelon supply chain

In this paper a multi-period multi-product multi-objective aggregate production planning (APP) model is proposed for an uncertain multi-echelon supply chain considering financial risk, customer satisfaction, and human resource training. Three conflictive objective functions and several sets of real constraints are considered concurrently in the proposed APP model. Some parameters of the proposed model are assumed to be uncertain and handled through a two-stage stochastic programming (TSSP) approach. The proposed TSSP is solved using three multi-objective solution procedures, i.e., the goal attainment technique, the modified ε-constraint method, and STEM method. The whole procedure is applied in an automotive resin and oil supply chain as a real case study wherein the efficacy and applicability of the proposed approaches are illustrated in comparison with existing experimental production planning method

An integrated shipment planning and storage capacity decision under uncertainty: a simulation study

Purpose – In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors take into account uncertainty of the demand rate and shipment lead time. While shipment planning is tactical or operational in nature, increasing storage capacity often requires top management’s authority. The purpose of this paper is to present a new method to integrate both operational and strategic decision parameters, namely shipment planning and storage capacity decision under uncertainty. The ultimate goal is to provide a near optimal solution that leads to a striking balance between the total logistics costs and product availability, critical in maritime logistics of bulk shipment of commodity items. Design/methodology/approach – The authors use simulation as research method. The authors develop a simulation model to investigate the effects of various factors on costs and service levels of a distribution system. The model mimics the transportation and distribution problems of bulk cement in a major cement company in Indonesia consisting of a silo at the port of origin, two silos at two ports of destination, and a number of ships that transport the bulk cement. The authors develop a number of “what-if” scenarios by varying the storage capacity at the port of origin as well as at the ports of destinations, number of ships operated, operating hours of ports, and dispatching rules for the ships. Each scenario is evaluated in terms of costs and service level. A full factorial experiment has been conducted and analysis of variance has been used to analyze the results. Findings – The results suggest that the number of ships deployed, silo capacity, working hours of ports, and the dispatching rules of ships significantly affect both total costs and service level. Interestingly, operating fewer ships enables the company to achieve almost the same service level and gaining substantial cost savings if constraints in other part of the system are alleviated, i.e., storage capacities and working hours of ports are extended. Practical implications – Cost is a competitive factor for bulk items like cement, and thus the proposed scenarios could be implemented by the company to substantially reduce the transportation and distribution costs. Alleviating storage capacity constraint is obviously an idea that needs to be considered when optimizing shipment planning alone could not give significant improvements. Originality/value – Existing research has so far focussed on the optimization of shipment planning/scheduling, and considers shipment planning/scheduling as the objective function while treating the storage capacity as constraints. The simulation model enables “what-if” analyses to be performed and has overcome the difficulties and impracticalities of analytical methods especially when the system incorporates stochastic variables exhibited in the case example. The use of efficient frontier analysis for analyzing the simulation results is a novel idea which has been proven to be effective in screening non-dominated solutions. This has provided the authors with near optimal solutions to trade-off logistics costs and service levels (availability), with minimal experimentation times

Scheduling of non-repetitive lean manufacturing systems under uncertainty using intelligent agent simulation

World-class manufacturing paradigms emerge from specific types of manufacturing systems with which they remain associated until they are obsolete. Since its introduction the lean paradigm is almost exclusively implemented in repetitive manufacturing systems employing flow-shop layout configurations. Due to its inherent complexity and combinatorial nature, scheduling is one application domain whereby the implementation of manufacturing philosophies and best practices is particularly challenging. The study of the limited reported attempts to extend leanness into the scheduling of non-repetitive manufacturing systems with functional shop-floor configurations confirms that these works have adopted a similar approach which aims to transform the system mainly through reconfiguration in order to increase the degree of manufacturing repetitiveness and thus facilitate the adoption of leanness. This research proposes the use of leading edge intelligent agent simulation to extend the lean principles and techniques to the scheduling of non-repetitive production environments with functional layouts and no prior reconfiguration of any form. The simulated system is a dynamic job-shop with stochastic order arrivals and processing times operating under a variety of dispatching rules. The modelled job-shop is subject to uncertainty expressed in the form of high priority orders unexpectedly arriving at the system, order cancellations and machine breakdowns. The effect of the various forms of the stochastic disruptions considered in this study on system performance prior and post the introduction of leanness is analysed in terms of a number of time, due date and work-in-progress related performance metrics

Two Efficient Meta-Heuristic Algorithms for the Robust Inventory Routing Problem with Backhaul

The inventory routing problem (IRP) involves the integration and coordination of two components of the logistics value chain: inventory management and vehicle routing. Therefore, consideration of this issue can be effective in decision making of the organization and will lead to lower costs or other goals. Our objective in this article is to examine a new inventory-routing model and solve it with meta-heuristic methods. For more flexibility of the model, and approaching the real world, the model of this article is considered multi-period and multi-product. Also, two objective functions, including minimizing system costs and transportation risk, are included in this model. Given that the main parameter of the model, that is, demand, is uncertain, we have used a robust optimization approach to solve it, and since this model is in the classification of NP-Hard problems, we have used two meta-heuristic algorithms consisting of non-dominated sorting genetic algorithm (NSGA-II) and a multi-objective imperialist competitive algorithm (MOICA). By examining the model in two deterministic and robust conditions, according to two criteria, the mean values of the objective function and its standard deviation, it has been determined that in almost all cases, the robust optimization model produces better solutions. Also, between the two meta-heuristics method, the NSGA-II algorithm has shown better quality according to the mentioned criteria. Obviously, taking into account the different features of a model increases its efficiency. But this, obviously, makes the model even more complex. However, this complexity of models can work like a real system. Our attention in this article has been to this subject. To analyze such models, exact methods do not have the required performance and paying attention to heuristic and meta-heuristic methods is very effective. In this paper, a robust optimization and meta-heurictic approaches focus on these goals

Un modelo para resolver el problema dinámico de despacho de vehículos con incertidumbre de clientes y con tiempos de viaje en arcos

Indexación: Web of Science; ScieloIn a real world case scenario, customer demands are requested at any time of the day requiring services that are not known in advance such as delivery or repairing equipment. This is called Dynamic Vehicle Routing (DVR) with customer uncertainty environment. The link travel time for the roadway network varies with time as traffic fluctuates adding an additional component to the dynamic environment. This paper presents a model for solving the DVR problem while combining these two dynamic aspects (customer uncertainty and link travel time). The proposed model employs Greedy, Insertion, and Ant Colony Optimization algorithms. The Greedy algorithm is utilized for constructing new routes with existing customers, and the remaining two algorithms are employed for rerouting as new customer demands appear. A real world application is presented to simulate vehicle routing in a dynamic environment for the city of Taipei, Taiwan. The simulation shows that the model can successfully plan vehicle routes to satisfy all customer demands and help managers in the decision making process.En un escenario real, los pedidos de los clientes son solicitados a cualquier hora del día requiriendo servicios que no han sido planificados con antelación tales como los despachos o la reparación de equipos. Esto es llamado ruteo dinámico de vehículos (RDV) considerando un ambiente con incertidumbre de clientes. El tiempo de viaje en una red vial varía con el tiempo a medida que el tráfico vehicular fluctúa agregando una componente adicional al ambiente dinámico. Este artículo propone un modelo para resolver el problema RDV combinando estos dos aspectos dinámicos. El modelo propuesto utiliza los algoritmos Greedy, Inserción y optimización basada en colonias de hormigas. El algoritmo Greedy es utilizado para construir nuevas rutas con los clientes existentes y los otros dos algoritmos son usados para rutear vehículos a medida que surjan nuevos clientes con sus respectivos pedidos. Además, se presenta una aplicación real para simular el ruteo vehicular en un ambiente dinámico para la ciudad de Taipei, Taiwán. Esta simulación muestra que el modelo es capaz de planificar exitosamente las rutas vehiculares satisfaciendo los pedidos de los clientes y de ayudar los gerentes en el proceso de toma de decisiones.http://ref.scielo.org/3ryfh