2003 Volume 16 Issue 12 Pages 628-636
In recent years, the integrated optimization of planning and scheduling from customer order management to delivery has been required from the viewpoint of Supply Chain Management. However, the simultaneous optimization model becomes increasingly complicated and often very difficult to be solved with the increase of the number of combinatorial alternatives. In this paper, we propose a decentralized supply chain optimization method for single stage production systems in which the total decision variables are optimized by solving several sub-problems consisting of Material Requirement Planning, Scheduling and Distribution Planning. A supply chain planning problem for single production system is solved by the proposed method and a hierarchical planning method. Numerical results show that the proposed method generates better solutions than the conventional method for the problems in which the planning decisions are relatively concerned with scheduling decisions.