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Production and distribution planning with direct shipment and multi-trips

Author

Listed:
  • Rachida Benfedel

    (Université de Tlemcen = University of Tlemcen, ESC [Rennes] - ESC Rennes School of Business)

  • Fayçal Belkaid

    (Université de Tlemcen = University of Tlemcen)

  • Nadjib Brahimi

    (ESC [Rennes] - ESC Rennes School of Business)

Abstract

This collaborative study with a company manufacturing Personal Protective Equipment (PPE) aimed to optimize production planning and distribution processes to minimize total costs. The company operates a manufacturing center with two production units, each specializing in a specific type of PPE and using a fleet of homogeneous trucks for direct shipment to the warehouse and several retailers. The problem consists of minimizing the overall cost of manufacturing, inventory, and transportation while considering factors such as production unit capacity, inventory levels, delivery requirements, and vehicle capacity. We have modeled the problem as a multi-product lot-sizing problem with multi-trip direct shipment. To solve this optimization problem, we have proposed a mixed-integer linear programming (MILP) formulation followed by an efficient hybrid simulated annealing algorithm. The performance of the hybrid simulated annealing meta-heuristic was analyzed by comparing its results with those of the MILP formulation, which was solved using a state-of-the-art commercial solver. Numerical experiments were conducted on real data from the PPE manufacturer and data sets adapted from existing literature. Results show that the hybrid simulated annealing heuristic achieves costs that are up to 3.74% lower than those obtained using the commercial solver (for the same CPU times). Furthermore, we tested our solution approach on actual instances specifically designed for the company. Our integrated approach achieves a significant cost reduction compared to the company's existing solution. Our results provide valuable insights for managers seeking to reduce costs while maintaining delivery efficiency.

Suggested Citation

  • Rachida Benfedel & Fayçal Belkaid & Nadjib Brahimi, 2025. "Production and distribution planning with direct shipment and multi-trips," Post-Print hal-05059003, HAL.
    • Handle: RePEc:hal:journl:hal-05059003
    DOI: 10.3934/jimo.2025038
    Note: View the original document on HAL open archive server: https://hal.science/hal-05059003v1
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    References listed on IDEAS

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