Facility Location with Modular Capacities for Distributed Scheduling Problems

Abstract

For some time now, customers are more interested in sustainable manufacturing and are requesting products to be delivered in the shortest possible time. To deal with these new customer requirements, companies can follow the Distributed Manufacturing (DM) paradigm and try to move their production sites close to their customer. Therefore, the aim of this paper is to connect the idea of DM with the integrated planning of production and distribution operations mathematically in a MIP model. To this end, the model simultaneously decides the position of the plants, the production capacity in each period as well as the production and distribution scheduling.