Multicriterion genetic optimization for due date assigned distribution network problems

Abstract

This paper focuses on the demand due date factor in multiechelon distribution network problems and its impact on the production scheduling in manufacturing plants. A reliable demand due date is critical in winning of customer orders. However, this may usually require high collaboration among entities in the network. Mismatching of one single schedule may seriously influence the reliability. In this connection, holistically optimizing the schedule of each entity among the network is essential. In addition, on time delivery may induce high operating cost. A trade-off between earliness, on time, and tardiness should also be considered. Hence, a multicriterion genetic optimization methodology is developed to holistically optimize them. It determines the optimized schedule to collaborate each entity to fulfill the demands. For enabling multicriterion decision-making, the proposed algorithm combines analytic hierarchy process with genetic algorithms (GAs). The problem is divided into two parts - (i) demand allocation and transportation problem, and (ii) production scheduling problem. The optimization approach is applied to iteratively optimize part (i), and then part (ii). Three experiments have been carried out, and the computation results show that the effect of due date is critical, and the ability of the proposed algorithms in taking trade-off between earliness and tardiness. © 2004 Elsevier B.V. All rights reserved.