Assigning and Scheduling Orders in a Make-to-Order Supply Chain

 

Zhi-Long Chen

Department of Decision and Information Technologies

Robert H. Smith School of Business

University of Maryland

College Park, MD 20742

Email: zchen@rhsmith.umd.edu

 

We consider a make-to-order supply chain consisting of several global plants and a domestic distribution center. Orders received shortly before a selling season need to be assigned to the plants and detailed scheduling of orders needs to be determined at each plant. A distribution schedule also needs to be determined for delivering completed orders to the distribution center. Different plants have different productivity and hence different production costs and times for an order. The objective of order assignment and scheduling is to optimize the tradeoff between total production and distribution cost and an order delivery lead time performance. We study various cases of the problem by classifying their computational complexity and proposing algorithms for solving them. We also analyze worst-case and asymptotic performance analysis of several heuristics and conduct computational tests.

 

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