CORS / Optimization Days 

HEC Montréal, May 29-31, 2023


HEC Montreal, 29 — 31 May 2023

Schedule Authors My Schedule

PPDI Production Planning and Distribution I

May 30, 2023 10:30 AM – 12:10 PM

Location: Banque CIBC (blue)

Chaired by Maryam Darvish

4 Presentations

  • 10:30 AM - 10:55 AM

    Integrated livestock production-distribution optimization

    • Maryam Darvish, Université Laval
    • Samuel Gbeya, presenter,

    This talk will discuss an integrated production-distribution problem motivated by a real-world
    livestock production case. This study proposes a mixed integer linear programming model
    to develop a production planning and delivery schedule for poultry farmers. The production
    planning comprises the number and breeds of animals to be raised, on each farm, when to
    start breeding, and the duration of the raising period. The delivery schedule focuses on when
    and the number of chickens to be delivered to each slaughterhouse at each period, including
    the duration of the transport, which is crucial for poultry welfare. This study aims to develop
    proper production and delivery schedules that increase profits over a planning period. For
    small-size instances, the computational results have shown that the proposed model can help
    to deal with production planning and delivery and may thus contribute to increasing profits.
    A Quebec poultry cooperative case study illustrates the proposed model's application.
    Keywords: poultry industry, production planning, delivery schedule, mathematical programming.

  • 10:55 AM - 11:20 AM

    Split demand and deliveries in an integrated three-level lot sizing and replenishment problem.

    • Matthieu Gruson, presenter, UQÀM - CIRRELT
    • Jean-François Cordeau, HEC Montréal, GERAD, CIRRELT
    • Raf Jans, HEC Montréal

    We address a three-level lot sizing and replenishment problem (3LSRP), an extension of the production routing problem. We consider one capacitated production plant that produces items over a discrete and finite planning horizon. The items are sent from the plant to the warehouses using direct capacitated shipments, and routes are designed to deliver the goods from the warehouses to the retailers. The objective is to minimize the sum of all operational costs. We contribute to the literature on integrated problems by introducing the concept of demand splitting which allows the demand from a specific period to be satisfied by deliveries over multiple periods. We develop two heuristics: a top-down and a bottom-up approach. The production decisions and the transportation decisions between the warehouses and the retailers are the leading decisions in the top-down and bottom-up approach, respectively. Computational experiments assess the performance of each heuristic. We analyze the impact of allowing splitting possibilities. The results show that the top-down approach obtains better performance in terms of cost, except when we allow demand splitting only. The bottom-up approach leads to a greater use of delivery splitting. Results also show that we obtain large gains thanks to the splitting possibilities.

  • 11:20 AM - 11:45 AM

    Three level lot sizing problem with distribution structure under product returns and refurbishment

    • Ajinkya Tanksale, presenter, Reh School of Business, Clarkson University
    • Priyanka Verma, National Institute of Industrial Engineering, Mumbai, India
    • Debabrata Das, National Institute of Industrial Engineering, Mumbai, India

    In this work, we address a closed loop capacitated 3-level lot sizing problem with a distribution structure that is motivated from supply chain of secondary packaging products in automobile industry. The supply chain consists of a single manufacturing plant shipping the product to multiple regional warehouses. The product is then distributed to suppliers of original equipment manufacturers and returned back to the warehouses. Due to fragile nature and multiple handlings, the product might be damaged and need refurbishment. If the product is broken beyond repair, it cannot be reused. A mixed-integer programming problem is proposed to determine a minimum cost production and distribution plan for the product across various levels of supply chain. To the best of our knowledge, this is the first attempt to integrate the product return and refurbishment in the 3-level lot sizing problem with a distribution structure which itself is very recently introduced in the literature. To solve this complex problem efficiently and effectively, we develop a hybrid heuristic that consist of a two-phase sequential approach embedded with relax-and-fix and fix-and-optimize matheuristics. Preliminary results of experimentation indicates the efficacy of the proposed solution approach over the state of art solver GUROBI.

  • 11:45 AM - 12:10 PM

    Production and distribution optimization of bio-based fertilizers

    • Guilherme O. Chagas, CIRRELT
    • Leandro C. Coelho, Université Laval
    • Maryam Darvish, presenter, Université Laval
    • Jacques Renaud, Université Laval, CIRRELT

    We study the production economics of bio-based waste valorization that turns municipal waste into composts and fertilizers to be exploited in agriculture. We design the production and distribution schedule of several types of fertilizers. Through a detailed mathematical description and optimization, we model and simulate the operations of an industrial partner and determine how critical operational parameters affect the performance of the system.