A Heuristic Master Planning Algorithm for Supply Chain Network with Recycle Policy
Date Issued
2006
Date
2006
Author(s)
Huang, Kai-Yu
DOI
zh-TW
Abstract
In a competitive business environment, how to coordinate the policies and behavior of organizations and facilities in supply chain is crucial to the performance of all chain members. And with the increased environmental concerns, the definition of supply chain has been extended and contained the recycle process, so-called green supply chain. Considering multiple final products, multiple discrete planning periods, multiple demands, recycle process, and recycle penalty, this study focuses on “Master Planning” of “Advanced Planning and Scheduling”, which is to determine a production and distribution plan of all demands on each node of the supply chain network.
One multiple-goal “Mixed Integer Programming” model is proposed for this planning problem. The objective is to minimize the delay cost first, followed by minimizing the sum of the production(handling) cost, holding cost, transportation cost, and recycle penalty. Owing to the great influence of the recycle penalty on the total cost of the supply chain, recycle penalty and other variable costs should be taken into consideration simultaneously in planning demands to optimize the performance of the overall supply chain.
First, MIP is used to solve the planning problem. However, when the problem gets more complex, the MIP model becomes unacceptable in time or unsolved due to the computing resource. Therefore, a heuristic algorithm is proposed to solve the “Mater Planning” problem for green supply chain.
The algorithm consists of three steps: (1) Do the preliminary procedures, which include transforming the closed-loop supply chain into an open-loop supply chain prone to planning, transforming all nodes in the network into single-functioned nodes, and searching the sub-networks for each final product. (2) Determine the planning sequence of demands. (3) Plan demands sequentially until all demands are fulfilled. The demand-planning algorithm is named BRVA (Balancing Recycle-penalty and Variable-cost Algorithm), which focuses on two main steps including setting the cost for each link and adjusting the production planning to avoid recycle penalty. In BRVA, both recycle penalty and variable cost are considered to achieve the optimization of the overall supply chain. To show the effectiveness and efficiency of the algorithm, a prototype is constructed and scenario analysis is illustrated.
Subjects
供應鏈管理
先進規劃排程
主規劃排程
啟發式演算法
多目標最佳化
回收流程
回收規費
Supply Chain Management
Advanced Planning and Scheduling
Master Planning
Heuristic Algorithm
Multiple-goal Optimization
Recycle Process
Recycle Penalty
Type
other
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