SYSTEM WITH MULTIPLE PRODUCTS

Tang Jiafu

(Key Laboratory of Process Industrial Automation of Ministry of Education, Northeastern University, Shenyang, 110004)

Kai-Leung Yung

(Department of Industried and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong)

Abstract: The joint decisions of production assignment, lot sizing, transportation and order quantity for multiple products in a production-distribution network with multiple suppliers, multiple products and multiple destinations are discussed. It tries to determine assignment of production among suppliers, production lot size, transportation between suppliers and destinations, and the order quantity at the destinations. A Lagrange relaxation based two-layer decomposition (LRD) method combining several heuristics is developed to solve the joint decision model (JDM-M). The first layer is the joint decisions in assigning production and transportation flow and lot sizing (APLS-TF), and the second layer is the joint transportation and order quantity (TOQ-M) problem. Some simulations show that this LRD with heuristics is effective for solving joint decision problems, particularly for large-scale problem.

Key words: Joint decisions  Production and distribution  Coordination  Heuristics  Two layer

CLC No: O22

国家自然科学基金(70471028、70431003、70301007)、教育部科技研究重点项目(104064)、教育部新世纪优秀人才支持计划(NCET-04- 0280)和辽宁省自然科学基金(20022019)资助项目. Received 20040909, received in revised form 20050320