Integrated Production and Distribution Problem of Perishable Products with a Minimum Total Order Weighted Delivery Time

Abstract

In this paper, an integrated production and distribution problem for perishable products is presented, which is an NP hard problem where a single machine, multi-customers, and homogenous vehicles with capacity constraints are considered. The objective is to minimize the total order weighted delivery time to measure the customer service level, by making two interacted decisions, production scheduling and vehicle routing, simultaneously. An integrated mathematical model is built, and the validity is measured by the linear programming software CPLEX by solving the small-size instances. An improved large neighborhood search algorithm is designed to address the problem. Firstly, a two-stage algorithm is constructed to generate the initial solution, which determines the order production sequence according to the given vehicle routing. Secondly, several removal/insertion heuristics are applied to enlarge the search space of neighbor solutions. Then, a local search algorithm is designed to improve the neighbor solutions, which further generates more chances to find the optimal solution. For comparison purposes, a genetic algorithm developed in a related problem is employed to solve this problem. The computational results show that the proposed improved large neighborhood search algorithm can provide higher quality solutions than the genetic algorithm.