Coordinated scheduling of production and delivery stages with stage-dependent inventory holding costs

This paper considers a problem of integrated decision-making for job scheduling and delivery batching wherein different inventory holding costs between production and delivery stages are allowed. In the problem, jobs are processed on a facility at a production stage and then delivered at the subsequent delivery stage by a capacitated vehicle. The objective is to find the coordinated schedule of production and delivery that minimizes the total cost of the associated WIP inventory, finished product inventory and delivery, where both the inventory costs are characterized in terms of the weighted flow-time and the delivery cost is proportional to the required number of delivery batches. It is proved that the problem is NP-hard in the strong sense. Thereupon, three heuristic algorithms are derived. Some restricted cases are also characterized as being solvable in polynomial time. Numerical experiments are conducted to evaluate the performance of the derived heuristic algorithms.