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Integration of a Cyclic Three-Stage Supply Chain for Fast Moving Consumer Goods

Shirvani Boroujeni, Nargess | 2014

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  1. Type of Document: Ph.D. Dissertation
  2. Language: Farsi
  3. Document No: 46742 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Shadrokh, Shahram
  7. Abstract:
  8. This research deals with a realistic cyclic three-stage supply chin consisting of one supplier, one manufacturer and one or more retailers, in FMCG environment. Orders from retailers are supposed to iterate over cycles and parallel machines are available to process perishable jobs with given release dates, due dates and deadlines. To start process of he jobs, perishable raw material, supplied by an external supplier, is required. Jobs are subject to post-production shelf life limitation and must be delivered to retailers during the corresponding time window bounded by due dates and deadlines. Both early and tardy jobs are penalized by partial weighted earliness/tardiness functions and the overall problem is to provide a cyclic schedule for the whole chain of minimum cost.
    In order to develop an effective integrated solution, the three-stage problem is decomposed to subproblems. First, a two-stage supply chain problem concentrating on procurement and production stages, is investigated and it is verified that the cost function is a convex function in special case of the problem. For the general case, a branch and bound algorithm is developed. Furthermore, the dynamic lot size problem is modified considering perishable material and cyclic schedule and effective exact and heuristic solutions are developed.
    The second subproblem is dedicated to production and distribution stages. Single and parallel machine production environment are investigated. In which for single machine a revised weighted shortest processing time (WSPT) rule is proposed and the noncyclic problem is solved by a two-phase heuristic algorithm. It is also verified that the cyclic version comprises some independent noncyclic problems. Numerical experiments reveal the efficiency of the proposed methods for solving the tested instances. Furthermore, the results verify that cyclic schedules decrease the total cost and increase flexibility and the manufacturer’s ability to satisfy customer’s orders. For parallel machine problem, mixed integer programming models are proposed and a heuristic solution beside an iterated greedy algorithm is developed to generate good and feasible solutions for the problem.
    The integrated solution for three stage problem is then designed by merging the partial solution by applying nested and sequential composing approaches. Two different mixed integer programming models are also developed for the problem. The proposed MIPs, and hybrid solutions produce a series of solutions covering a wide range of cases from slow optimal solutions to quick and approximated schedules
  9. Keywords:
  10. Supply Chain Management (SCM) ; Mixed Integer Programming ; Fast Moving Consumer Goods ; Cyclic Dynamic Size Problem ; Cyclic Production Scheduling ; Iterated Greedy Algorithm

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