Joint production and delivery lot sizing for a make-to-order producer–buyer supply chain with transportation cost

2014 ◽  
Vol 66 ◽  
pp. 23-35 ◽  
Author(s):  
Shine-Der Lee ◽  
Yen-Chen Fu
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Transportation Cost ◽  
Joint Production ◽  
Make To Order

scholarly journals Integrated Production-Delivery Lot Sizing Model with Limited Production Capacity and Transportation Cost considering Overtime Work and Maintenance Time

2018 ◽  
Vol 2018 ◽  
pp. 1-10 ◽  
Author(s):  
Renqian Zhang ◽  
Xuefang Sun
Keyword(s):  
Supply Chain ◽  
Numerical Experiment ◽  
Lot Sizing ◽  
Production Capacity ◽  
Transportation Cost ◽  
Solution Procedure ◽  
Sensitive Analysis ◽  
Integrated Production ◽  
Overtime Work ◽  
Maintenance Time

An extension of the integrated production-delivery lot sizing model with limited production capacity and transportation cost is investigated. We introduce the factor of overtime work into the model to improve the manufacturer’s production. In addition, when finishing a lot, the manufacturer has maintenance time to maintain and repair equipment for ensuring that the supply chain is operating continuously. By analyzing the integrated model, the solution procedure is provided to determine the optimal delivery and order policy. We conduct a numerical experiment and give sensitive analysis by varying some parameters to illustrate the problem and its solution procedure.

scholarly journals Modeling Freight Consolidation in a Make-To-Order Supply Chain: A Simulation Approach

Processes ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 1554
Author(s):  
Mohammed Alnahhal ◽  
Diane Ahrens ◽  
Bashir Salah
Keyword(s):  
Supply Chain ◽  
Response Time ◽  
Lead Time ◽  
Transportation Cost ◽  
Consolidation Process ◽  
Make To Order ◽  
Freight Consolidation ◽  
Average Lead ◽  
Special Time

Shipment consolidation is one of main initiatives to reduce CO2 emissions and transportation cost. It reduces the number of shipments per customer and reduces transportation costs by using larger shipments. This paper investigates the temporal consolidation process in a central consolidation center in a make-to-order supply chain. This research was motivated by a case study of a design furniture company that has many suppliers and customers in large parts of Europe. Simulation was used to check the effect of a new and a special time-based temporal consolidation on the response time in outbound logistics. A soft delivery deadline that is less than the average lead time was used because of the long lead time. Arena Software was used to model the supply chain in order to find the best circumstances to use consolidation. Results showed that temporal consolidation could be more effective when order preparation time is with larger variability. The useful waiting is more when there is at least one order every four days. A formula that approximates the percent of reduced shipments was found. Furthermore, many shipments can be reduced without severely affecting the average response time. The value of the study is that it investigates consolidation problems in a high-mix low-volume environment that was overlooked by previous research.

System dynamics model of production-inventory-routing system in the green supply chain

2021 ◽  
pp. 1-14
Author(s):  
Katayoun Naderi ◽  
Roya M. Ahari ◽  
Javid Jouzdani ◽  
Atefeh Amindoust
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Supply Chains ◽  
Transportation Cost ◽  
Green Supply Chain ◽  
Ideal Condition ◽  
Inventory Routing ◽  
Production Inventory ◽  
Fierce Competition ◽  
Maximum Production Rate

Fierce competition in the global markets forced companies to improve the design and management of supply chains, because companies are always looking for more profit and higher customer satisfaction. The emergence of the green supply chain is one of the most important developments of the last decade. It provides an opportunity for companies to adjust their supply chains according to environmental goals and sustainability. The integrated production-inventory-routing is a new field that aims to optimize these three decision-making levels. It can be described as follow: a factory produces one or more products, and sells them to several customers (by direct delivery or a specific customer chain). The current study aims to model a production-inventory-routing system using a system dynamics approach to design a green supply chain under uncertain conditions. For this purpose, first, the association between selected variables was determined. Then, the proposed model was validated. Finally, to identify variables with the highest influence, four scenarios were developed. The results indicated that minimum total transportation cost, the total warehouse capacity of the supply chain, and the maximum production rate are the most influential strategies to achieve ideal condition.

Coordinating lot sizing and integrated production and distribution scheduling with batch delivery and holding cost

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maedeh Bank ◽  
Mohammad Mahdavi Mazdeh ◽  
Mahdi Heydari ◽  
Ebrahim Teimoury
Keyword(s):  
Supply Chain ◽  
Lot Sizing ◽  
Mixed Integer ◽  
Time Interval ◽  
Content Type ◽  
Integrated Production ◽  
Holding Costs ◽  
Integrated Production And Distribution ◽  
Distribution Scheduling ◽  
Production And Distribution

PurposeThe aim of this paper is to present a method for finding the optimum balance between sequence-dependent setup costs, holding costs, delivery costs and delay penalties in an integrated production–distribution system with lot sizing decisions.Design/methodology/approachTwo mixed integer linear programming models and an optimality property are proposed for the problem. Since the problem is NP-hard, a genetic algorithm reinforced with a heuristic is developed for solving the model in large-scale settings. The algorithm parameters are tuned using the Taguchi method.FindingsThe results obtained on randomly generated instances reveal a performance advantage for the proposed algorithm; it is shown that lot sizing can reduce the average cost of the supply chain up to 11.8%. Furthermore, the effects of different parameters and factors of the proposed model on supply chain costs are examined through a sensitivity analysis.Originality/valueAlthough integrated production and distribution scheduling in make-to-order industries has received a great deal of attention from researchers, most researchers in this area have treated each order as a job processed in an uninterrupted time interval, and no temporary holding costs are assumed. Even among the few studies where temporary holding costs are taken into consideration, none has examined the effect of splitting an order at the production stage (lot sizing) and the possibility of reducing costs through splitting. The present study is the first to take holding costs into consideration while incorporating lot sizing decisions in the operational production and distribution problem.

scholarly journals Willingness to Pay for Halal Transportation Cost: The Moderating Effect of Knowledge on the Theory of Planned Behavior

2019 ◽  
Vol 8 (6S3) ◽  
pp. 479-488 ◽  
Keyword(s):  
Supply Chain ◽  
Theory Of Planned Behavior ◽  
Willingness To Pay ◽  
Planned Behavior ◽  
Behavioral Control ◽  
Transportation Cost ◽  
Subjective Norm ◽  
Moderating Effect ◽  
Perceived Behavioral Control ◽  
The Relationship

Halal transportation services is one of the crucial components of producing Halal products. Since Halal is unique and involves elaborate regulations and executions, therefore it requires huge investment. Like any other supply chain, the transportation cost will be transferred to the end users, normally the customers, thus increasing the price of final products. It is notably common to find studies done on Muslim customers and their preference on Halal products, however, studies on Muslims preferences towards Halal transportation could still be considered as novel. By adopting the Theory of Planned Behavior and religiosity; and by taking into account the moderating effect of knowledge, this study aims to identify the factors that lead to the customers’ willingness to pay for the Halal transportation cost. Using a purposive sampling method, the data was collected among Muslim consumers in a prominent shopping complex in Malaysia and was analyzed using Smart Partial Least Squares (PLS). Based on the finding, it is shown that the attitude and perceived behavioral control gave a positive relationship with the willingness to pay for Halal transportation. Meanwhile, subjective norm and religiosity were on the opposite as there were both hold an insignificant effect towards the willingness to pay for the Halal transportation. Knowledge has moderated the relationship between attitude and willingness to pay for Halal transportation, but not for the relationship between subjective norm and perceived behavioral control. It is expected that this study could provide a better understanding of Muslim consumers’ behavior on purchasing for Halal transportation, as well as other Halal supply chain activities.

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