OPTIMIZED INTEGRATED PRODUCTION, TRANSPORTATION AND DELIVERY IN FLOW SHOP SYSTEM: MATHEMATICAL MODELING AND APPLICATION IN PRODUCTION SYSTEMS

Due to the market globalization, implementation of the integrated approaches among various operations in a supply chain network has become one of the fundamental decisions for the manufacturers to gain more bene- ts and competitive advantages for their production systems. Most of the production scheduling studies assumes job sequencing without attention to the delivery concept or by assuming delivery after production hieratically and separately. Also, the ability of the organization to coordinate their operational decisions with nal customers, increase customer satisfaction, followed by competitive advantage and ultimately more protable for the organization. Given the importance of production, transportation and delivery of products to nal customers in organizations that are customers are in wide geographical locations, in this study, the optimized network is developed for integrated decisions of production, transportation and delivery of nished products to the customer. Thus, the joint scheduling of production and delivery operations as both pivotal and important operations in the manufacturing system is studied with an integrated vision in this paper. A mixed integer programing (MIP) model is developed to formulate the proposed network in ow shop system. In proposed network, transportation of orders to the center of customer areas is done via direct delivery method and delivery within the customer area is done by routing. The models objective function is to minimize total cost for the integrated model, which includes sum of the production cost and delivery cost. In order to assess model performance and in the absence of standard numerical example, some numerical examples are randomly generated in dierent sizes and then solved to show the eciency of the proposed model. As well as to evaluate the impact of various decisions on the objective function of the proposed network, the detailed sensitivity analysis was conducted to evaluate the impact of various factors on the network.