Solution methods for the integrated permutation flowshop and vehicle routing problem

Abstract

The integration between production and distribution to minimize total elapsed time is an important issue for industries that produce products with a short lifespan. However, the literature focus on production environments with a single stage. This paper enhances the complexity of the production system of an integrated production and distribution system by considering flow-shop environment decisions integrated with a vehicle routing problem decision. In this case, each order is produced in a permutation flowshop subsystem and then shipped to its destination by a capacitated vehicle, and the objective is to sequence these orders to minimize the makespan of the schedule. This paper uses two approaches to address this integrated problem: a mixed-integer formulation and an Iterated Greedy algorithm. The experimentation shows that the Iterated Greedy algorithm yields results with a 0.02% deviation from the optimal for problems with five jobs and is a viable option to be used in practical cases due to its short computational time.