Hybrid Heuristic Optimization of an Integrated Production Distribution System with Stock and Transportation Costs

Citation:

Bensakhria, Mohamed, and Samir Abdelhamid. 2021. “Hybrid Heuristic Optimization of an Integrated Production Distribution System with Stock and Transportation Costs”. In International Conference on Computing Systems and Applications, Lecture Notes in Networks and Systems book series.

Abstract:

In this paper we address the integration of two-level supply chain with multiple items, production facility and retailers’ demand over a considered discrete time horizon. This two-level production distribution system features capacitated production facility supplying several retailers located in the same region. If production does take place, this process incurs a fixed setup cost as well as unit production costs. In addition, deliveries are made from the plant to the retailers by a limited number of capacitated vehicles and routing costs are incurred. This work aims at implementing a solution to minimize the sum of the costs at the production facility and the retailers. The methodology adopted to tackle this issue is based on a hybrid heuristic, greedy and genetic algorithms that uses strong formulation to provide a good solution of a guaranteed quality that are as good or better than those provided by the MIP optimizer with a considerably larger run time. The results demonstrate that the proposed heuristics are effective and performs impressively in terms of computational efficiency and solution quality.

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