An integrated model of scheduling, batch delivery and supplier selection in a make-to-order manufacturing system

This paper analyzes a supply chain, which consists of a manufacturer, a retailer and several suppliers in which the retailer orders jobs to the manufacturer and the suppliers provide the requiring parts. The manufacturer schedules and processes the orders and dispatches them to the retailer either individually or collectively in batches. The manufacturer incurs a penalty cost for each tardy job and a transportation cost for every delivered batch and therefore, searches for a schedule that yields minimum number of tardy jobs and batches. Moreover, the manufacturer tries to optimize its supplying cost through locating the suppliers that offer appropriate release times and costs for manufacturing parts. Since the release times of parts directly affect scheduling of orders, in this research, we develop an integrated mathematical model for the manufacturer that incorporates suppliersʹ selection issue into the scheduling and batching decisions. Furthermore, we present a heuristic algorithm (greedy algorithm) and also a local search to quickly determine the optimal or near-optimal solutions. The computational analysis shows the importance of the integrated model and also the superiority and effectiveness of the heuristic algorithms.