Integrated Production-Distribution Planning An optimization model for mixed-model assembly lines

Purpose of this paper This paper presents an optimization approach for the integrated planning of production and logistics for vehicle manufacturers in a multi-site production network with multi-modal two-stage distribution. The novelty lies in the integration of production sequencing constraints stemming from mixed-model assembly lines and the effort for high transport vehicle utilization as a contribution to a greener supply chain. Design/methodology/approach Using industry data from a German vehicle manufacturer, customer orders in a multi-modal two-stage distribution network are allocated to daily buckets of several plants explicitly considering Ho:No sequencing constraints from multi-model assembly lines. We use OptimJ to formulate the model and solve it subsequently with CPLEX. Due to the np-hardness of the problem, a solution to optimality is generally not feasible. Findings The calculated utilization of transports is generally over 90 % for trucks and trains