An integrated optimal inventory lot-sizing and vehicle-routing model for a multisupplier single-assembler system with JIT delivery

Document Type

Article

Publication Date

9-2-2014

Abstract

In a manufacturing system, a just-in-time (JIT) procurement and supply system is important for reducing cost and responding to customers requirement quickly. Successful implementation of a JIT system needs supplier/manufacturer cooperation in small lot-size delivery and inbound logistics cost reduction. In this study, an integrated optimal model of inventory lot-sizing vehicle routing of multisupplier single-manufacturer with milk-run JIT delivery is established. A novel method for computing transportation cost is proposed. Because the integrated model is a NP-hard problem, a meta-heuristic algorithm of ant colony optimisation is developed for solving the model. Numerical examples are used to demonstrate and test the effectiveness of the model and the algorithm. The results show that integrated model with milk-run delivery can reduce the total cost and realise the JIT production and procurement philosophy which emphasises small lot-size production and delivery. The results highlight the importance of cooperation between suppliers and manufacturers in JIT production practices. © 2014 Taylor & Francis.

Publication Source (Journal or Book title)

International Journal of Production Research

First Page

5086

Last Page

5114

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