Coordination of Production and Delivery in Supply Chain Scheduling

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Abstract In many supply chains for make‐to‐order or time‐sensitive products, finished orders are often delivered to customers immediately or shortly after production. Consequently, there is little or no finished product inventory, and production and finished product delivery must be scheduled in a coordinated way in order to achieve a desired level of delivery performance at minimum total cost. Research on coordinated production and delivery scheduling models is relatively recent, but is growing rapidly due to an increasing number of applications in practice. In this article, major application examples that can be modeled as a coordinated production and delivery scheduling problem are reviewed, an overview of existing coordinated production and delivery scheduling models is given, and solution techniques that have been studied in the literature are discussed along with several directions for future research.