Coordinated production and delivery scheduling for service-oriented manufacturing systems with deterioration effect

Service-oriented manufacturing (SOM) is a new industrial model that combines manufacturing with service. To enhance the competitiveness of manufacturers in SOM systems, we investigate a coordinated production and delivery scheduling problem considering a third-party logistics (3PL) provider. The considered problem can be divided into two phases, including production phase and delivery phase. In the production phase, jobs are processed by multiple manufacturers located in different geographical zones. Jobs are with deteriorating processing time and set-up time. Several structural properties of the problem in the production phase are proposed, based on which a heuristic algorithm is designed to make decisions on job batching and batch sequencing. After being processed, the finished jobs are immediately delivered to a customer by manufacturers' own vehicles or the 3PL provider. A dynamic programming algorithm is developed to solve the problem in the delivery phase. The integrated scheduling problem is proved to be NP-hard. Hence, we develop a general variable neighbourhood search (GVNS) to solve the problem in a reasonable time. The basic variable neighbourhood descent (BVND) is used as a local search method in the GVNS. Finally, the computational experiments are conducted and the results verify the effectiveness and stability of the proposed approach.