The coordinated production and transportation scheduling problem with a time-sensitive product: a branch-and-cut algorithm

In many supply chain scenarios in which short lifespan products are considered, production and transportation decisions must be made in a coordinated manner with no inventory stage. Hence, a solution to this problem conveys information about production starting times of each product lot at facility and delivery times of the lots to various customer-sites located in different geographic regions. In this paper, we study a variant of the problem that single product with limited shelf life is produced at single facility. Once produced, production lot is directly distributed to the customers with non-ignorable transportation time by single vehicle having limited capacity before the lifespan. Objective is to determine the minimum time required to produce and deliver all customer demands. To this end, we develop a branch-and-cut (B&C) algorithm using several valid inequalities adopted from the existing literature to improve lower bounds and applying a local search based on simulated annealing approach to improve upper bounds. On test problems available in the literature, we evaluate the performance of the B&C algorithm. Results show the promising performance of the B&C algorithm.