A simulation based heuristic discrete particle swarm algorithm for generating integrated production-distribution plan

  • Authors:

  • P. Ashoka Varthanan;N. Murugan;G. Mohan Kumar

  • Affiliations:

  • Mechanical Engineering Department, Sri Krishna College of Engineering and Technology, Coimbatore 641 008, Tamilnadu, India;Mechanical Engineering Department, Coimbatore Institute of Technology, Coimbatore 641 014, Tamilnadu, India;Park College of Engineering and Technology, Coimbatore 641 659, Tamilnadu, India

  • Venue:
  • Applied Soft Computing
  • Year:
  • 2012

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Abstract

Deciding the strategy for production and distribution in a stochastic demand scenario is important for the manufacturing industries. An integrated production-distribution plan considering regular, overtime and outsourced production costs along with inventory holding, backorder, hiring/laying-off and trip-wise distribution costs is developed for a renowned bearing manufacturing industry producing three types of products at three locations. Demand is assumed to vary uniformly and a novel simulation based heuristic discrete particle swarm optimization (DPSO) algorithm is used for obtaining the best production-distribution plan that serves as a trade-off between holding inventory and backordering products. The algorithm also uses an innovative regeneration type constraint handling method which does not require a penalty operator. In addition to the bearing manufacturing industry data set, two other test data sets are also solved. The simulation based optimization approach gives good approximate solutions for the stochastic demand problems.