Integrated Scheduling of Production and Outbound Distribution in a Supply Chain

 

Zhi-Long Chen

Department of Decision & Information Technologies

Robert H. Smith School of Business

University of Maryland

College Park, MD 20878

Email: zchen@rhsmith.umd.edu

 

In many applications involving time-sensitive (e.g., seasonal or perishable) products, finished orders have to be delivered to customers immediately or shortly after the production. Consequently, there is little or no finished product inventory in the supply chain such that production and outbound distribution are very intimately linked and must be scheduled jointly in order to achieve a desired on-time delivery performance at minimum total cost.  Research on integrated scheduling models of production and outbound distribution is relatively recent, but is growing very rapidly. In this talk, we will provide an overview of the latest developments in this area. We will present some application examples from the latest literature, classify existing models from the latest literature into several different classes, and for each class of the models give an overview of the tractability of the various problems and solution approaches studied in the literature. In addition, we will discuss potential values of production-outbound distribution integration in various model contexts, and identify some areas for future research.

 

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