Minimizing average lead time for the coordinated scheduling problem in a two-stage supply chain with multiple customers and multiple manufacturers

Abstract

Abstract In this study, the two-stage supply chain scheduling problem with multiple customers and multiple manufacturers is considered. The first stage consists of m manufacturers (suppliers), while the second stage contains q vehicles, each of which distributes the batches from the manufacturers to the customers. Multiple customers and average lead time are two most important issues in practice; however, no study has been carried out so far to investigate these two issues together for the two-stage supply chain scheduling problem. The main contribution of this study is to coordinate production and distribution decisions to obtain an effective scheduling in a two-stage supply chain that contains multiple customers and multiple manufacturers. A mixed integer linear optimization model is developed to formulate the problem with the average lead time objective. Because the problem has been shown to be NP-hard, a hybrid artificial bee colony and simulated annealing (HABCSA) algorithm is introduced and used to solve the problem. In addition, a lower bound (LB) and several structural properties for the problem are presented and different batching mechanisms are developed based on these properties. For the purpose of performance analysis of HABCSA with different batching mechanisms, detailed computational experiments are conducted using random instances which are generated based on real aluminum production data for different capacity levels. The experimental results indicate that the HABCSA heuristic consistently outperforms the Genetic Algorithm (GA) and the Artificial Bee Colony (ABC) algorithm for each capacity level.