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Integrated Production and Transportation Scheduling in a Make-to-Order Manufacturing Network with Heterogeneous Vehicles

In the situation of intelligent manufacturing, the demand for individual customization increases. Many enterprises adopt make-to-order production. With the increasing trend of globalization, numerous enterprises are multinational, which have multi-location plants and distributors. The customized orders are split into multiple different jobs and then produced by different plants. Under the requirements of low-cost production and rapid response to demand, the coordination between production and transportation is becoming increasingly important. Considering the features of order splitting production, heterogeneous vehicle transportation, and collaborative delivery in make-to-order production, this paper studies the integrated scheduling of production and transportation of multiple splittable orders in networked plants and distributors with different geographical locations. A mixed-integer linear programming model is developed for deciding the production plant, start production date, the transport vehicles, and departure date of each job from its assigned plant with the objective of minimizing total cost including manufacturing cost, inventory cost, transportation cost, and backorder cost. The commercial solver Gurobi is used to solve this model. Numerical experiments based on the real data of a customized furniture enterprise in China are performed to show the efficiency of the proposed approach and demonstrate that our integrated scheduling approach is more effective than sequential scheduling.