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Two-stage Logistics Scheduling with Two-mode Transportation

Authors Wang, Haiyan
Lee, Chung-Yee View this author's profile
Issue Date 2004
Source IIE Annual Conference and Exhibition 2004 , 2004, p. 867
Summary This paper considers a new class of scheduling problems arising in logistics systems in which two different transportation modes are available at the stage of product delivery and the mode with the shorter transportation time charges a higher cost. Each job ordered by the customer is first processed in the manufacturing facility and then transported to the customer. There is a due date for each job to arrive to the customer. In our new scheduling problems, the machine scheduling problem in the manufacturing stage and the transportation mode selection problem in the delivery stage are integrated in order to achieve the global maximum benefit for a company. We basically consider two types of problems. In the first part, we consider the case where no tardiness is allowed and the objective is to minimize the total transportation cost. It is proved NP-hard in general. An optimal dynamic programming algorithm is provided for a special case with two more assumptions. In the second part, we consider the problem where tardiness is allowed while the penalty cost is incurred for late order and the objective is to minimize the sum of the total transportation cost and the total weighted tardiness cost. A branch and bound algorithm is developed to solve this problem. Several dominance properties are provided and two different lower bounds are developed. One of the lower bound is based the assignment model while the other is based on a Lagrangian relaxation of the problem. These two lower bounds complement each other for different parameters, which is used in the branch and bound algorithm to improve the overall performance. Comparison and explanations are provided for these two different lower bounds. The results of computational experiments indicate the branch and bound algorithm is efficient.
Language English
Format Conference paper
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