A new mathematical model for production and delivery scheduling problem with common cycle in a supply chain with open-shop system

Abstract

In order to coordinate the supply chain, reordering strategy of needed goods must be synchronised and sequence of production and replenishment cycle time must be optimised in terms of cost. Therefore, this paper studies the economic lot and delivery scheduling problem for multi-stage supply chain. The common cycle time and integer multiplier policies were adopted to accomplish the desired synchronisation. In this regard, a new mathematical model has been presented where a manufacturer with open-shop system purchases raw materials from suppliers and sends them to packaging companies after converting them into the final product and then they are sold. Since this is a non-deterministic polynomial-time hard (NP-hard) problem, simulated annealing algorithms have been developed for it. For this algorithm, two different scenarios have been proposed for solving the study problem and at the end the numerical results have been applied on problems with different dimensions by the algorithm. Copyright © 2020 Inderscience Enterprises Ltd.