Abstract
This paper discusses a design-based mixed integer mathematical model for concurrent optimisation of manufacturing scheduling and transportation mode decisions in a cellular manufacturing system (CMS). Cell loading is performed based on the outcome of CMS design. The CMS design is performed by considering the probabilistic demand environment and the layered cellular manufacturing system design is utilised. Cell loading is performed by using a deterministic mixed integer mathematical model. In cell loading phase, alternative manufacturing due dates of each product and a customer due date of each product are considered. Based on the availability of capacity and alternative manufacturing due dates, a product might be divided and manufactured in different points in time and these smaller lots can be dispatched to the customer by using alternative transportation methods such that the entire lot arrives to the customer before its desired due date in order to maximise the total net profit.
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