We propose a nonlinear mathematical model to consider production scheduling and vehicle routing with time windows for perishable food products in the same framework. The demands at retailers are assumed stochastic and perishable goods will deteriorate once they were produced. Thus the revenue of the supplier is uncertain and depends on the value and the transaction quantity of perishable products when they are carried to retailers. The objective of this model is to maximize the expected total profit of the supplier. The optimal production quantities, the time to start producing and the vehicle routes can be determined in the model simultaneously. Furthermore, we elaborate a solution algorithm composed of the constrained Nelder-Mead method and a heuristic for the vehicle routing with time windows to solve the complex problem. Computational results indicate our algorithm is effective and efficient. © 2008 Elsevier Ltd. All rights reserved.
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