Integrated production scheduling and distribution planning in dairy supply chain by hybrid modelling

In this paper we address the production scheduling and distribution planning problem in a yoghurt production line of the multi-product dairy plants. A mixed integer linear programming model is developed for the considered problem. The objective function aims to maximize the benefit by considering the shelf life dependent pricing component and costs such as processing, setup, storage, overtime, backlogging, and transportation costs. Key features of the model include sequence dependent setup times, minimum and maximum lot sizes, overtime, shelf life requirements, machine speeds, dedicated production lines, typically arising in the dairy industry. The model obtains the optimal production plan for each product type, on each production line, in each period together with the delivery plan.