Integrated production scheduling and vehicle routing problem with job splitting and delivery time windows

In this paper, we study a production scheduling and vehicle routing problem with job splitting and delivery time windows in a company working in the metal packaging industry. In this problem, a set of jobs has to be processed on unrelated parallel machines with job splitting and sequence-dependent setup time (cost). Then the finished products are delivered in batches to several customers with heterogeneous vehicles, subject to delivery time windows. The objective of production is to minimize the total setup cost and the objective of distribution is to minimize the transportation cost. We propose mathematical models for decentralized scheduling problems, where a production schedule and a distribution plan are built consecutively. We develop a two-phase iterative heuristic to solve the integrated scheduling problem. We evaluate the benefits of coordination through numerical experiments.