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Comparison of heuristic procedures for an integrated model for production and distribution planning in an environment of shared resources

Listed author(s):
  • STRACK, Géraldine


    (Université catholique de Louvain, Louvain School of Management and CORE, B-1348 Louvain-la-Neuve, Belgium)

  • FORTZ, Bernard


    (Université Libre de Bruxelles, Département d'informatique, Faculté des Sciences, B-1050 Bruxelles, Belgium)

  • RIANE, Fouad


    (Facultés Universitaires de Mons, Louvain School of Management, B-7000 Mons, Belgium)

  • VAN VYVE, Mathieu


    (Université catholique de Louvain, Louvain School of Management and CORE, B-1348 Louvain-la-Neuve, Belgium)

Registered author(s):

    In this paper, we present a mathematical model which integrates tactical-operational production and distribution decisions in a shared resources environment. More precisely, we integrate lot sizing production and distribution decisions with vehicle routing decisions. We obtain a global multi-period multi-item multi-vehicle model where a capacity constraint models the link between production and distribution decisions. Three heuristics are presented in order to solve this global model. The first two ones are based on a decomposition approach of the global model in production and distribution submodels. The third heuristic offers a higher level of integration by taking into account transportation decisions in the production planning problem. Computational tests show that the performance of the heuristic depends on the amount of shared resources in the system, the type of customer demand but not on the weight of the production cost against the distribution cost. The three heuristics allow to tackle problems of larger size than an optimal solution approach.

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    Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2011016.

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    Date of creation: 01 Mar 2011
    Handle: RePEc:cor:louvco:2011016
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    1. Michel Gendreau & Alain Hertz & Gilbert Laporte, 1994. "A Tabu Search Heuristic for the Vehicle Routing Problem," Management Science, INFORMS, vol. 40(10), pages 1276-1290, October.
    2. Mohamed, Zubair M., 1999. "An integrated production-distribution model for a multi-national company operating under varying exchange rates," International Journal of Production Economics, Elsevier, vol. 58(1), pages 81-92, January.
    3. Barbarosoglu, Gulay & Ozgur, Demet, 1999. "Hierarchical design of an integrated production and 2-echelon distribution system," European Journal of Operational Research, Elsevier, vol. 118(3), pages 464-484, November.
    4. Chandra, Pankaj & Fisher, Marshall L., 1994. "Coordination of production and distribution planning," European Journal of Operational Research, Elsevier, vol. 72(3), pages 503-517, February.
    5. Strack, Géraldine & Pochet, Yves, 2010. "An integrated model for warehouse and inventory planning," European Journal of Operational Research, Elsevier, vol. 204(1), pages 35-50, July.
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