An Optimization Method for the Simultaneous Design of a Product Family and its Related Supply Chain Using a Taboo Search Algorithm

Product family design is currently facing a multitude of challenges, the main problem stemming from the diversity offered to consumers. To design a product family, designers have to define an efficient bill of materials which ensures product assembly within a predefined length of time in order to satisfy the synchronized delivery principle. In addition, the modules used to assemble the finished products have to be competitive in terms of logistical costs. The ability to anticipate the constraints associated with the production process and with transportation is consequently of great interest. In this paper, we focus on the process of identifying a set of modules to be used in the assembly of the finished product. The objective is to define the bill of materials for each product from the modules belonging to that set, and to assign these modules to distant facilities where they will be manufactured and then shipped to a nearby facility for final assembly within a specific time. We use a set partitioning formulation to represent the problem, and solve it by adapting a Taboo Search algorithm in which the assembly process and the supply chain design are considered at the same time.