taop18: supply chain optimization - linköping...

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TAOP18: Supply Chain Optimization Nils-Hassan Quttineh Department of Mathematics Division of Optimization

TAOP18: Lecture 1 2

Overview§  Introductoryexample§  Courseinforma8on

•  Contents,Aims,Webpage•  Organiza8on,Schedule•  Examina8on

§  Introduc8ontoSupplyChainManagement§  Projects§  Arecentresearchproject (if8mepermits)

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Production Planning at Södra Cell

TAOP18: Lecture 1 4

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TAOP18: Lecture 1 5

TAOP18: Lecture 1 6

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TAOP18: Lecture 1 7

TAOP18: Lecture 1 8

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TAOP18: Lecture 1 9

Produc8onplanning

TAOP18: Lecture 1 10

Produc8onPlans

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StorageLevel

Course information

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Teacher§  Nils-HassanQuNneh,MAI

•  LecturerinOp8miza8on

•  Email:[email protected]

•  Office:B-building(3rdfloor),room3A:589(corridorA,topfloor,betweenentrance23-25)

B-building

27 25 23 21

Here!


Aimsofthecourse§  Thecourseaimstogivethestudentsanabilitytomodel

op8miza8onproblems,andaninsightinhowmathema8caltheorycanbeusedtoformulateandsolveprac8calproblems,withemphasisonapplica8onsinsupplychain,distribu8onandtransporta8onplanning.

§  Thecoursealsoaimstogiveadeeperknowledgeabout

combinatorialop8miza8on,i.e.op8miza8onproblemswithanunderlyinggraphstructure.

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Coursecontent§  Op8miza8oninSupplyChainManagement

•  Transporta8on&Rou8ngproblems (Vehiclerou8ng)•  Scheduling&Sequencing (StaffScheduling)

§  Modeling•  Mathema8calModeling•  AMPL

§  Solu8onmethods•  AMPL/CPLEX (Lagrangianrelaxa8on)•  Heuris8cs (Localsearch,Tabusearch)•  Columngenera8on


Courseorganiza8on§  Lectures

•  Introduc8onstoproblemareas,Solu8onmethods,Projects

§  Seminars•  2h–Illustra8onofmethods&problemsolving

§  Presenta8ons•  Oralpresenta8ons

§  Laboratorywork•  Scheduledtoguaranteecomputeraccessandincreasepossibilityofteacheravailability

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Examina8on§  Examina8onthroughprojects

§  Solve3differentprojects•  Mandatorytohandin3wricenreports•  Chooseoneprojecttopresentorally

§  Groups•  Preferably2studentsineach(1isok,butnotthree)•  Listsavailableinthebreak

§  Coursegrade•  Possiblegradesare:U,3,4,5


Examina8on,cont’d§  Eachprojectreportisgivenupto40points

•  30pointsforcorrectanswersonspecificques8ons.•  Upto10pointsforthegeneralstructureofthereport,presenta8onofresults,discussions,relevantreferences.

§  Coursegrade•  Topassthecourse,youneedatleast15points/project•  Ifyougetlessthan15points,itispossibletorespondtocomments,andhopefullyimproveresults.

§  Gradelimits.3:>50points.4:>70points.5:>90points

(Oralpresenta8onmayimprovegradesinborderlinecases)

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Timeplan Version3

Page 1

Timeplan TAOP18: Supply Chain Optimization

v.44 31 oct – 4 nov v.45 7-11 nov v.46 14-18 nov v.47 21-25 nov

må ti on to fr må ti on to fr må ti on to fr må ti on to fr

Project 1 Project 1 (3-18 nov) P 1

Project 2 Project 2 (16 nov – 2 dec)

Lecture 1 2 3 4 5

Sem/Lab Se 1 L 1 Se 2 L 2

v.48 28 nov – 2 dec v.49 5-9 dec v.50 12-16 dec v.51 19-23 dec

må ti on to fr må ti on to fr må ti on to fr må ti on to fr

Project 3 Project 3 (30 nov – 16 dec) P 3 x x

Project 2 2 P 2 x x

Lecture 6 7 x x

Sem/Lab Se 3 L 3 x x


Homepage§  Coursewebpage:

•  hcp://courses.mai.liu.se/GU/TAOP18/

§  Lisam:•  hcps://lisam.liu.se

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Introduction to Supply Chain Management


(SupplyChain)Planningarena

From Stadtler, H., Kilger, C., Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies ( 2007)

Purchasing Production Distribution Sales

Strategic Network Planning

Demand planning

Order fulfillment & ATP

Master Planning

Distribution planning

Transport planning

Production planning

Scheduling & Sequencing

Purchasing & Material Requirements

planning (MRP)

Strategic

Tactic

Operational

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StrategicNetworkPlanning§  Wheretolocatethenodesofthenetwork

•  Produc8onsites•  Warehousing/Distribu8onsites

§  Minimizecost,subjectto•  Suppliers,Markets,Compe8tors•  Produc8oncosts•  Transporta8oncosts•  Legisla8on,Exchangerates,Taxes,Duty,Risks,…



Demand planning


Master Planning


Transport planning

Production planning



planning (MRP)


MasterPlanning§  Produc8onanddeliveryplans,e.g.

•  SynchronizedMaterialFlowintheen8rechain•  Aggregateddataforen8rechain:-Produc8on-Transport-Stock

•  Inputtodetailedplanning•  Bocleneckfocus•  Balancedemand&supplymidtermhorizon-Whattoproduce,where&when



Demand planning


Master Planning


Transport planning

Production planning



planning (MRP)

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Produc8onplanning,Scheduling&Sequencing§  Produc8onplanning

•  Exactlyhowmuchtoproduceofwhatandinwhich8mebucket-Givendemand,Capacity,…

§  Scheduling/Sequencing•  Inwhichorderinwhichmachines-Withwhichpersonnel,…

•  Exactlywhat8medoesproduc8onstart



Demand planning


Master Planning


Transport planning

Production planning



planning (MRP)


Distribu8on&Transportplanning§  Distribu8onplanning/Tac8calchoices

•  Costforkeepingstock,vs.transport-Inventorymanagement

•  Distribu8onalterna8ves•  Fleetmanagement

§  Opera8onalplanning/Transportplanning•  Vehiclechoice•  Routeplanning•  Vehicleloading



Demand planning


Master Planning


Transport planning

Production planning



planning (MRP)

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Logis8csvs.Supplychain§  Logis8cs

•  Logis8csmanagementisthatpartofsupplychainmanagementthatplans,implements,andcontrolstheefficient,effec8veforwardandreverseflowandstorageofgoods,servicesandrelatedinforma8onbetweenthepointoforiginandthepointofconsump8oninordertomeetcustomers'requirements.

§  CouncilofSupplyChainManagementProfessionals(CSCMP)


Logis8csvs.Supplychain§  SupplyChainManagement (CSCMP)

•  Supplychainmanagementencompassestheplanningandmanagementofallac8vi8esinvolvedinsourcingandprocurement,conversion,andalllogis8csmanagementac8vi8es.Importantly,italsoincludescoordina8onandcollabora8onwithchannelpartners,whichcanbesuppliers,intermediaries,thirdpartyserviceproviders,andcustomers.

•  Inessence,supplychainmanagementintegratessupplyanddemandmanagementwithinandacrosscompanies.

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SupplyChainNetworkstructure

1 2

n

1

n

1 2

n

End

Cus

tom

ers

/ con

sum

ers

Cus

tom

ers

Tier

3 to

n

Customers Tier 2

Focal company

Raw

mat

eria

l Sup

plie

rs

Sup

plie

rs

Tier

3 to

n

1 2

n

1

n

1 2

n

1

Suppliers Tier 2

1

3

n

Suppliers Tier 1

2

1

2

3

n

Customers Tier 1

2

Managed process links Monitored process links Not-Managed process links Non-Member process links


SupplyChainNetworkstructure

1 2

n

1

n

1 2

n

End

Cus

tom

ers

/ con

sum

ers

Cus

tom

ers

Tier

3 to

n

Customers Tier 2

Raw

mat

eria

l Sup

plie

rs

Sup

plie

rs

Tier

3 to

n

1 2

n

1

n

1 2

n

1

Suppliers Tier 2

1

3

n

Suppliers Tier 1

2

1

2

3

n

Customers Tier 1

2

Focal company

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Legend,SCstructure

Typesofbusinessprocesslinks:

1.Managedprocesslinks2.Monitoredprocesslinks3.Non-memberprocesslinks4.Not-managedprocesslinks


Typesofmethods

●  Scenariochoice●  Strategicdecisions●  …

●  Organiza8onaldecisions●  Marketstrategy

■  Quan8ta8vemethods

●  Sta8s8csBusinessIntelligenceIntegra8on

●  Op8miza8on

●  Discreteeventsimula8onTDDC28inNorrköping,inSwedish,though…

§  Qualita8vemethods,ex.

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Supply Chain Optimization and Modeling


Op8miza8on§  Schedulingochtransporta8onproblemsareorendifficult

combinatorialop8miza8onproblems

§  Combinatorialproblemswithnetworkstructure

Combinatorial optimization deals with problems that can be formulated as integer programs but have an underlying combinatorial structure that tends itself to the development of special algorithms.

Victor Klee

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Simplifiedproblem

Op8miza8onmodel

Solu8on

Results

Defini8ons,simplifica8ons,assump8ons

Problemformula8on

Solu8onmethod

Verifica8on

Valida8on

Realcaseproblem

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Op8miza8onasatoolforplanning§  Ifweknow,forsure,thatthecomputedop8mal

solu8onwillnotbeop8malwhenimplemented,whyuseop8miza8onmethods?

§  Whatalterna8vesarethere?

§  Whatisthelikelihoodthatapar8cularnon-op8malcomputedsolu8on,isop8malinprac8ce?


Simplifica8on,SupplyChain

Factories Suppliers Distribution

Centers

Customers

Transportation

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SupplyChain§  Produc8onand/orinventorystepswithflow§  Products§  Capacity

•  Transports(trucks,boats)•  Factories,machines,inventory

§  Productsmaychange•  Rawmaterial–semi-manufacturedar8cles–products

§  Timeperiods


Op8miza8onmodelsinsupplychain§  OrenLP-problemsfortransporta8ontogetherwith

integerrequirements

§  Integerflow(products)•  Numberoftrucks,boats

§  Binaryvariables•  Using/openingfactories(fixcost)

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Mathema8calformula8on

§  Variables•  Orenthelinksabovewithmanyindex

Forexamplefactories,products,8meperiods (Xijp,Yjkp)

•  Afixcostgivesacorrespondingvariableo  Forexampleopenafactory (Zj)

Xijp Yjkp

Z j


Mathema8calformula8on

Capacity

balance Node 0

Inventory ,

Demand

Supply

1,

jKzx

jyx

tjwyxw

kdy

ibx

ji

ij

kjk

iij

jtk

ktjttj

jkjk

jiij

∀≤

∀=−

∀=−+

∀≥

∀≤

∑

∑∑

∑

∑

∑

−

§  Objec8vefunc8on•  Acostorenimpliesvariables,whichareincludedintheobjec8vefunc8on

§  Constraints

•  Mostcommon:

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Solu8onmethods§  Smallerproblemscanorenbesolvebyastrict

mathema8calmodelformula8onandbyusingcommercialsorware,e.g.AMPL/CPLEX.

§  Largerproblemsbecomesverydifficultsincethenumberofvariables(andconstraints)isverylarge.

§  Columngenera8on●  Master-problemisasetcoveringproblem●  Shortestpath,minimumcostproblemsassub-problems

§  Tabusearch


Solu8onmethods§  Lagrangianrelaxa8on

•  LagrangerelaxthecomplicatedconstraintsGivessmaller(easier)sub-problems,forexampleminimumcostproblemsforeachproduct.

•  Providesop8mis8cboundsGivesalowerbound(LBD)forminimiza8onproblems.

•  Themul8plierscanbeusedtofindafeasiblesolu8onAfeasiblesolu8onprovidespessimis8cbounds(UBD)

§  Heuris8cs•  Greedyheuris8cs•  Heuris8csusingtheLagrangianmul8pliers,etc.

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Projects


Introduc8ontotheProjects§  Problemsolving

1.  Problemanalysis2.  Modeling(Problemformula8on)3.  Datacollec8on4.  Methoddevelopment(Algorithmdevelopment)5.  Solvingtheproblem6.  Implementa8on

§  Theprojectassignmentsfocusondifferentaspectsinthesupplychain.

§  Focusonop8miza8onasatoolinlargescaleproblems.

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Project1:Supplychainmodeling

Factories Suppliers Distribution

Centers

Customers

Transportation


Project1:Supplychainmodeling§  Modelingassignment

•  DevelopaMixedIntegerLinearProgramming(MILP)modelforthetransporta8onproblem

§  Modelingenvironment

•  AMPLandCPLEX(GURUBI)

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Project1:Supplychainmodeling§  Lectures:2,3

§  Projectdescrip8on: Acendlectures,seeLisamwebpage

§  Labora8on8me (Notcompulsory)•  ComputerRoom,B-building,entrance21,2ndfloor,B-corridor•  MondayNovember7th17-21

§  Wricenreport•  FridayNovember18th

§  Oralpresenta8on (Onlyifyouchoosetopresentproject1)•  15minutespresenta8onand5minutesofques8ons•  MondayNovember21st•  MakeanappointmentonLisamusingtheDoodle-link


Project2:Vehiclerou8ng§  VehicleRou8ngProblemwithmul8plevehiclesand

mul8pledepots

§  Metaheuris8capproach:•  Generateanefficienttransporta8onscheduleusingTabusearch

§  Modelingenvironment•  Matlab,VBA,Java,…

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VehicleRou8ngPlanning(VRP)

Delieveraspecificquan8tyfromthedepottoanumberofcustomers,givenanumberoftruckswithaspecificcapacity

5

6

32

7

demand

5

7

TruckCapacity=12

Depot

Costumer


Project2:Vehiclerou8ng§  Lectures:4,5


§  Labora8on8me (Notcompulsory)•  ComputerRoom,B-building,entrance21,2ndfloor,B-corridor•  MondayNovember21st17-21

§  Wricenreport•  FridayDecember2nd

§  Oralpresenta8on (Onlyifyouchoosetopresentproject2)•  15minutespresenta8onand5minutesofques8ons•  MondayDecember5th•  MakeanappointmentonLisamusingtheDoodle-link

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Project3:Aircrewscheduling§  Problemdescrip8on

•  Thetourofduty(ToD)problemo  Givenisanumberoffightsthatmustbecovered.o  Findanefficientcombina8onofflightswhereallflightsarecovered.

•  Tourgenera8onorencons8tutesdifficultproblems,duetocomplicatedrulesandregula8onsthatmustbesa8sfied.


Project3:Aircrewscheduling

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§  Programmingassignment•  Developacolumngenera8onprocedurethatiden8fiestheop8malroutesfortheairlinecrew

§  Modelingassignment•  Developacolumngenera8onscheme,i.e.amasterproblemandasubproblem

•  Solvetheproblemforgivendata

§  Modelingenvironment•  AMPLandCPLEX(GUROBI)



§  Lectures:6,7


§  Labora8on8me (Notcompulsory)•  ComputerRoom,B-building,entrance21,2ndfloor,B-corridor•  MondayDecember5th17-21

§  Wricenreport•  FridayDecember16th

§  Oralpresenta8on (Onlyifyouchoosetopresentproject3)•  15minutespresenta8onand5minutesofques8ons•  MondayDecember19th•  MakeanappointmentonLisamusingtheDoodle-link


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