Fuzzy scheduling of a build-to-order supply chain

Abstract

The overwhelming majority of the literature in the area of supply chain planning and scheduling considers the traditional make-to-stock (MTS) environment. However, manufacturers of assembled products such as cars, computers, furniture, etc. adopt the build-to-order supply chain (BOSC) to become agile in a mass customization process in order to meet diversified customer requirements. In this paper we propose an integrated production–distribution planning model for a multi-echelon, multi-plant and multi-product supply chain operating in a build-to-order (BTO) environment. The uncertainties associated with estimation of the various operational cost parameters are represented by fuzzy numbers. The BOSC scheduling model is thus constructed as a mixed-integer fuzzy programming (MIFP) problem with the goal of reducing the overall operating costs related to component fabrication, procurement, assembling, inspection, logistics and inventory, while improving customer satisfaction by allowing product customization and meeting delivery promise dates at each market outlet. An efficient compromise solution approach by transforming the problem into an auxiliary multi-objective linear programming model is also suggested.

Keywords:

• Build-to-order supply chain
• Agile manufacturing
• Production-distribution planning
• Fuzzy integer programming