MILP model for simultaneous batching, production and distribution operations in single-stage multiproduct batch plants

Abstract

Traditionally, the short-term production and distribution activities have been addressed with a decoupled and sequential methodology. Although this approach simplifies the problem, there are several environments where it generates inefficiencies or is simply not applicable. Consequently, the integration of both problems is very valuable in a variety of industrial applications, especially in industries where final products must be delivered to customers shortly after production. This paper presents a mixed-integer linear optimization model that simultaneously solves the production and distribution scheduling in a single-stage multi-product batch facility with multiple nonidentical units operating in parallel, where transportation operations are carried out with a heterogeneous fleet of vehicles. As operations are performed in a batch environment, the production and distribution problems also integrate decisions related to the number and size of batches required to meet the demand for multiple products. The capabilities of the proposed approach are illustrated through several cases of study. Finally, these examples are solved with a two-stage approach and the superiority of the solutions using the integrated approach is demonstrated.