Model and metaheuristics for a scheduling problem integrating procurement, sale and distribution decisions

Abstract

This paper presents an integrated approach for short-term supply chain management (SCM) at a fast moving consumer goods production plant. The problem is to determine the production quantities, to provide a detailed production schedule, to trigger the relevant express deliveries of raw material, and to manage the distribution. We propose a linear integer model, which integrates all of these decisions within scheduling. To find high quality solutions in a reasonable amount of time, various solution methods are proposed, such as a greedy constructive heuristic, two tabu search metaheuristics, a basic variable neighborhood search and an enhanced one, which uses a variable shaking operator. Experiments on realistic instances show that the latter method is efficient and robust. This paper is a contribution to the SCM literature (indeed, only few references address the integration of short term decisions) and to the general metaheuristics field (as the variable neighborhood search paradigm is extended).