Scheduling and co-ordination of multi-suppliers single-warehouse-operator single-manufacturer supply chains with variable production rates and storage costs
Journal
International Journal of Production Research
Journal Volume
51
Journal Issue
9
Pages
2593-2601
Date Issued
2013
Author(s)
Abstract
We study a supply chain scheduling and co-ordination problem comprising multiple suppliers, a single warehouse operator, a single manufacturer, and multiple retailers, where the supply chain has limited production capacity that can take only some of the orders from the retailers. For a decentralised supply chain, the manufacturer is a decision maker that selects the orders and aims to maximise its own profit, where the profit is a function of the order storage time and storage quantity, order sequence-dependent weighted storage costs, and idle time of the orders. On the other hand, for a centralised supply chain, a supply chain co-ordinator exists that aims to maximise the profit of the whole supply chain and allocates the profit among the supply chain members. We first formulate the problem as a two-machine common-due-window flow shop scheduling problem. We then develop a theorem and two algorithms to solve the optimal scheduling problems in both the decentralised and centralised supply chains. With these results, we develop a method that can achieve channel co-ordination based on a profit sharing rule, together with an increase in the production rates and a decrease in the storage costs. ? 2013 Taylor & Francis.
Subjects
flow shop scheduling; production rate; storage cost; supply chain co-ordination
Other Subjects
Flow shop scheduling problem; Flow-shop scheduling; Optimal scheduling; Production capacity; Production rates; Storage costs; Supply chain scheduling; Variable production rate; Costs; Machine shop practice; Manufacture; Profitability; Scheduling; Warehouses; Supply chains
Type
journal article