A coordinated algorithm for integrated production scheduling and vehicle routing problem

In this paper, the integrated production scheduling and vehicle routing problem is considered for a Make-to-Order manufacturer, who has a single machine for production and limited vehicles with capacity constraints for transportation. The objective is to determine production scheduling and vehicle routing, which are two interacted decisions, to minimise the maximum order delivery time. A property on optimal production sequence is proposed first, based on which backward and forward batching methods are developed and are embedded into a proposed genetic algorithm. The proposed genetic algorithm is capable of providing high-quality solutions by determining the two decisions simultaneously. For comparison purpose, a two-stage algorithm is developed, which decomposes the overall problem into two successively solved sub-problems. The experiments show that the proposed genetic algorithm can provide higher quality solutions than the proposed two-stage algorithm and two published algorithms studying related problems.