Multi-Product Shipment and Production Scheduling Mathematical Model under Different Distribution Policies

Abstract

Nowadays, integration of production and distribution has been important in the supply chain. Besides, due to their limited lifespan, integration in the supply chain of perishable items has led to more studies. This study aims to present integrated production and shipment models under full truckload capacity (TL) and less than truckload (LTL) policies combining perishable and non-perishable products in a supply chain, simultaneously. The optimization objective is to minimize the total relevant cost of manufacturer such as the production setup, inventory holding, and transportation costs per time unit. After presenting the models, different numerical example has been used to evaluate based on the change of truck capacity, lifespan as well as costs, and increasing the number of perishable products via Gams software. The results obtained illustrate that the priority of policies TL and LTL depends on the capacity of the truck and shipping costs.