Volume 57, Number 6, November-December 2023
|3093 - 3116
|30 November 2023
A decentralized production–distribution scheduling problem: Solution and analysis
Rennes School of Business, 2 rue Robert D’Arbrissel, 35065 Rennes, France
Accepted: 2 October 2023
In modern production–distribution supply chains, decentralization has increased significantly, due to increasing production network efficiency. This study investigates a production scheduling and vehicle routing problem in a make-to-order context under a decentralized decision-making structure. Specifically, two different decision makers hierarchically decide the production and distribution schedules to minimize their incurred costs and we formulate the problem as a bi-level mixed-integer optimization model as a static Stackelberg game between manufacturer and distributor. At the upper level, the manufacturer decides its best scheduling under a flexible job-shop manufacturing system, and at the lower level, the distributor decides its distribution scheduling (routing) which influences the upper-level decisions. The model derives the best production–distribution scheduling scheme, with the objective of minimizing the cost of the manufacturer (leader) at the lowest possible cost for the distributor (follower). As the lower level represents a mixed-integer programming problem, it is challenging to solve the resulting bi-level model. Therefore, we extend an efficient decomposition algorithm based on Duplication Method and Column Generation. Finally, to discuss the decentralization value, the results of the presented bi-level model are compared with those of the centralized approach.
Mathematics Subject Classification: 90B35
Key words: Supply chain management / decentralized production–distribution scheduling / flexible job-shop / bi-level mixed-integer programming / decomposition algorithm
© The authors. Published by EDP Sciences, ROADEF, SMAI 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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