Integrated Shipment and Production Planning: A mixed-integer linear programming approach with multiple suppliers and Due Dates
Résumé
Planning of production orders in an assembly-based
industry depends on the available components. Typically, the
production plan is followed by a material requirement planning
to ensure the availability of the required components. This is
why routing these elements and their availability greatly impacts
the production plan and vice versa. The coordination of both
plans simultaneously can improve the quality of the planning
decisions and reduce operational costs. This research studies
the effect of integrating routing decisions with the production
plan considering environmental impact. We developed a mixed
integer linear programming model; the objective function of the
problems includes the operational inbound routing costs, the
holding cost of components in the manufacturing site’s inventory,
the lateness cost of the production order, and minimizing
greenhouse gas emissions. Our study is exemplified in a numerical
example where we present three different scenarios, highlighting
how prioritizing the manufacturing site’s different objectives can
directly impact the production plan of the manufacturing orders.