Production Scheduling and Customer Orders Assignment in a Three-Level Supply Chain

In the classical production-distribution centers problem, only assignment of customers, distribution centers, and suppliers is determined. This paper extends the problem of production-distribution centers assignment by considering sequencing decisions in the supply network. Nowadays, meeting delivery time of products is a competitive benefit; therefore, the objective is to minimize total tardiness. This problem is mathematically formulated by a mixed integer programming model. Then, using the proposed model, small instances of the problem can be optimally solved by GAMS software. Moreover, two metaheuristics based on variable neighborhood search and simulated annealing are proposed to solve large instances of the problem. Finally, performance of the proposed metaheuristics is evaluated by two sets of balanced and unbalanced instances. The computational results show the superiority of the variable neighborhood search algorithm.