Abstract
As the automotive industry has been striving to enhance its efficiency, competitiveness, and sustainability, great focus is often placed on opportunities for improving its supply chain operations. We study the effect of introducing multiple modes of transportation in an industry-motivated production and transportation problem involving short-term automotive supply chain planning. We consider multiple, heterogeneous modes of transportation that offer a cost vs. delivery time option to the manufacturer. Having multiple modes of transportation in the system promotes supply chain sustainability. We present an integer linear programming model that captures the availability of multiple transportation modes. We then provide a solution approach based on a hybrid simulated annealing algorithm that we use to analyze the problem. Experimental results demonstrate the impact of additional transportation mode lead times compared to costs in the integrated supply chain.
Highlights
In the automotive industry, companies actively seek opportunities to enhance efficiency while meeting or exceeding customer expectations and government regulations
We study the impact of multiple transportation modes on total integrated cost minimization in a real-world production and transportation planning problem of a Tier-1 automotive supplier dealing with short-term automotive part order planning
Conclusions and directions forSection future research are outlined in Section results, including a comparison of the results from different transportation mode cost and lead time
Summary
Companies actively seek opportunities to enhance efficiency while meeting or exceeding customer expectations and government regulations. While all modes of transportation deliver to strategy the sameon destinations (DCs),cost Their costs and lead decision makers to understand the impact of this total integrated times vary. The goal of this research study is to provide insights for decision makers on planning for the right transportation alternatives based on their impact on the objective function (i.e., total integrated production, inventory, transportation, and outsourcing quantities over the planning horizon by cost). The goal of this research study is to provide insights for decision makers on planning considering the multiple modes of transportation simultaneously, enhancing the supply chain for the right production, inventory, transportation, and outsourcing quantities over the planning sustainability. Section provides an integer linear programming model that captures the details of the current experiment results, including a comparison of the results from different transportation moderesearch cost problem wellmultiples. Conclusions and directions forSection future research are outlined in Section results, including a comparison of the results from different transportation mode cost and lead time
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