On the optimal replenishment scheduling for a distribution center with overtime operational costs

• Main Authors: Hsiu-Ling Huang, 黃繡菱
• Other Authors: Jia-Yen Huang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/24094438283540605631

碩士 === 東海大學 === 工業工程與經營資訊學系 === 95 === In the supply chain system, the distribution center (DC) plays a role of collecting products from the suppliers and distributing them to the retailers after the operations of sorting and picking. Most of the studies on the lot scheduling of the DC did not take into account the limit of capacity and assumed that the DC was able to fulfill the scheduled operations satisfactorily. However, there is only limited capacity for the operations in the DC and it usually incurs an over-time cost when the capacity load exceeds the limit. Therefore, if the over-time cost is not considered in the scenario, the managers’ decision-making could be seriously biased. In this study, we employ the “Power-of-Two” (PoT) policy in which the arrival cycle time (arrival from a supplier to the DC) and the departure cycle time (departing the DC to a retailer) must be a PoT-integer multiple times of a basic period. By taking into accounts the over-time cost, we derive a mathematical model for the supply chain system and propose two solution approaches, namely, a genetic algorithm and a heuristic. Our solution approaches not only obtains the optimal arrival and departure cycle times of the transportation fleet, but also reduces the peak load in the DC to decrease the possible over-time cost to minimize total average total costs incurred in the supply chain system. Our numerical results show that our solution approaches are able to obtain a close-to-optimal solution within a reasonable run time.