Dynamic co-ordinated scheduling in the supply chain under a process modernisation

Abstract

A new dynamic model for co-ordinated scheduling of interlinked processes in a supply chain under a process modernisation is presented. Such a problem is vital in many of the supply chain management domains. This problem is represented as a special case of the scheduling problem with dynamically distributed jobs. The peculiarity of the proposed approach is the dynamic interpretation of scheduling based on a natural dynamic decomposition of the problem and its solution with the help of a modified form of continuous maximum principle blended with combinatorial optimisation. The special properties of the developed model allow using methods of discrete optimisation for the schedule calculation. Optimality and sufficiency conditions as well as structural properties of the model are investigated. Advantages and limitations of the proposed approach are discussed. With the developed approach, an explicit inclusion of a process modernisation in the SC co-ordinated decisions for a wide ranges of possible applications as well as a dynamic model and a tractable algorithm for optimal discrete time scheduling on the basis of continuous maximum principle have been obtained.