Optimal Methodology for Synchronized Scheduling of Parallel Station Assembly with Air Transportation # Viswanath Kumar Ganesan#, Li Kunpeng*, and Sivakumar Appa Iyer# Innovation in Manufacturing Systems and Technology, Singapore MIT Alliance, Singapore 639798 * School of Mechanical & Production Engineering, Nanyang Technological University, Singapore Abstract— We present an optimal methodology for synchronized scheduling of production assembly with air transportation to achieve accurate delivery with minimized cost in consumer electronics supply chain (CESC). This problem was motivated by a major PC manufacturer in consumer electronics industry, where it is required to schedule the delivery requirements to meet the customer needs in different parts of South East Asia. The overall problem is decomposed into two sub-problems which consist of an air transportation allocation problem and an assembly scheduling problem. The air transportation allocation problem is formulated as a Linear Programming Problem with earliness tardiness penalties for job orders. For the assembly scheduling problem, it is basically required to sequence the job orders on the assembly stations to minimize their waiting times before they are shipped by flights to their destinations. Hence the second sub-problem is modelled as a scheduling problem with earliness penalties. The earliness penalties are assumed to be independent of the job orders. Index Terms — Scheduling, Supply chain, Optimization, air transportation I. INTRODUCTION T HE synchronization problem of CESC studied in this work is observed in a major PC assembly manufacturing industry facing a challenge in its performance of on time delivery. The company has its major assembly plant in Singapore. The industry receives their orders through many sources including email, World Wide Web, fax and phone. Orders come randomly, and the company commits the delivery time to the customers. Air transportation is commonly used for the distribution of high value MTO consumer electronics products to global customers and in general, commercial cargo flights are Manuscript received November 19, 2004. This work was supported in part by the Singapore MIT Alliance and School of Mechanical and Production Engineering, Nanyang Technological University. V. K. Ganesan is a Research Fellow in Singapore-MIT Alliance, 50 Nanyang Avenue, Singapore 639798. Phone: 65 6790 6397; Fax: 65 6862 7215; E-mail: vkganesan@ntu.edu.sg. K. P. Li is a Ph D Scholar in School of Mechanical and Production Engineering, Nanyang Technological University, Singapore 639798. Email: PG01538891@ntu.edu.sg. A. I. Sivakumar is with Singapore-MIT Alliance and School of Mechanical and Production Engineering, Nanyang Technological University, 50 Nanyang Avenue, Singapore 639798. E-mail: msiva@ntu.edu.sg. often used. The important dynamic factors, which dictate the outbound logistics of consumer electronics supply chain are (a) the number of available flights for the distribution planning horizon, (b) the departure and arrival time of the flights, (c) the designated capacity and the corresponding transportation cost, and (d) the possible special capacity in each flight with the corresponding freight cost. Hence, the air transportation allocation involves selection of capacities in flights for all orders to minimize the cost of transportation. Costs or penalties are incurred by delivering an order either earlier or later than the customers’ due dates. The delivery earliness costs could result from the need for storage and insurance. The delivery tardiness cost includes customer dissatisfaction, contract penalties, loss of sales, and potential loss of reputation. Costs are also incurred when an order is completed earlier than its scheduled transportation departure time. The costs can be taken as either for storing them at the production facility or waiting charges at the airport. Unlike the basic assembly and transportation cost of the products, these penalty costs can be minimized by achieving better synchronization in CESC. The Just-in-Time (JIT) production philosophy has lead to a growing interest both in production and transportation scheduling problems considering earliness and tardiness penalties [1]-[3]. Research on Production scheduling, in general, has addressed problems with out taking into account the final delivery and transportation requirements after processing the jobs on machines. Only a few researchers have considered the joint optimization of machine scheduling and job transporting. The first study explicitly considering the transportation issue is by Maggu and Das [4]. They studied a two-machine flow-shop makespan problem in which they assumed that there are unlimited buffers on both machines and a sufficient number of transporters available to transport jobs from one machine to the other with job-dependent transportation times. The problem was solved by using a generalization of Johnson's rule [5]. Potts [6] and Hall and Shmoys [7] studied a single-machine problem with unequal job arrival times and delivery times. In their model, they implicitly assumed that a sufficient number of vehicles are available in the system in order to deliver immediately a processed job to the customer. They provided a heuristic and a worstcase analysis. Woeginger [8] studied the same problem in the parallel-machine environment with equal job arrival times and provided a heuristic with a worst-case analysis. Machine scheduling problems with jobs delivered in batches after processing is reported in Herrmann and Lee [9], Chen [10], and Cheng et al. [11]. They did not consider transportation times, i.e., it was assumed that deliveries can be made instantaneously. Lee and Chen [12] studied machine scheduling problems with explicit transportation considerations. Two types of transportation situations are considered in their models. The first type, Type-1, involves intermediate transportation of jobs from one machine to another for further processing. The second type, Type-2, involves the transportation provided to deliver finished jobs to their destinations. Jobs are delivered in batches by transporter(s). They assumed that all jobs require the same physical space on the transporter. Both transportation capacity and transportation times are considered in their models. This class of scheduling problems is computationally difficult. The problem under study consists of two tasks. The first task is to allocate accepted orders to available flights’ capacities to minimize total transportation cost and delivery (earliness & tardiness) penalties. The second task is to determine a schedule for assembly production that minimizes the waiting time before air transportation. Transportation allocation is constrained by assembly, i.e., allocation should be balanced with assembly capacity. The assembly schedule should ensure that each order does not miss its scheduled flight and also minimize the average waiting time between assembly and transportation. The assembly schedule decides assembly release time for each order. We assume that there are no delays or interruptions in assembly line during the planning period and the assembly capacity is sufficient enough to produce all the orders on time to meet their transportation departure times. II. ASSUMPTIONS The air transportation problem and the assembly problem are formulated in this work are based on the following assumptions: • Decisions of transportation allocation and the assembly scheduling are for the orders accepted in the previous planning periods. • Order fulfillment is considered to be achieved when the order reach the destination airport on time. • Orders can be split and allocated to different flights • All the packed products have same or similar dimensions. • There are multiple flights in the planning period with different transportation specifications such as cost, capacity, etc. • Only one flight departs any given instant of time. • Each flight has a normal capacity area with normal transportation cost and a special capacity area with special transportation cost for orders that exceed normal capacity. Normal capacity can be considered as the forecasted capacity, while special capacity can be taken as maximum extension from the forecasted capacity in the planning period. • Business processing time and cost, together with loading time and loading cost for each flight are included in the transportation time and transportation cost. • Local transportation time and cost are included in assembly time and assembly cost. Local transportation transfer products from the assembly plant to airport. • Orders released into assembly flow shop for the planning period are delivered within the same planning period which means there are no assembly backlogs. • The assembly flow line is a balanced one and hence it is treated as a single machine. • Setup times are included in the processing times of assembly manufacturing. • Total assembly manufacturing time of an order is directly proportional to the order’s quantity. • Waiting time penalties for jobs before transportation are job independent i.e., they are not determined based on any job characteristics. • The starting time of the planning period is set equal to zero. III. METHODOLOGY The synchronization problem is investigated in this section by adopting a two stage approach which involves decomposing the overall problem into two sub-problems, consisting of an air transportation allocation problem and an assembly scheduling problem. The air transportation allocation problem is formulated as an Integer Linear Programming (ILP) Problem with earliness tardiness penalties for job orders. For the assembly scheduling problem, it is basically required to sequence the job orders on the parallel assembly stations to minimize the waiting times of job orders before they are shipped by flights to their destinations. Hence the second sub-problem is modeled as a parallel machine scheduling problem with job independent earliness penalties. The air transportation problem is solved first to obtain the transportation allocation schedule. Then the assembly scheduling problem is solved optimally by formulating as an Integer Linear programming problem to obtain the release time of each order. The input data for the scheduling problem are the flight allocation results of the air transportation allocation problem. IV. TRANSPORTATION ALLOCATION MODEL The air transportation problem, the first stage of the research problem, formulated as an Integer Linear Programming (ILP) model allocates orders to the existing transportation capacity with minimum cost. Synchronization is incorporated into the ILP model by the constraint that balances the production rate of the assembly facility with the flight allocation. The following notations are defined: the order index, i=1, 2, …. N the flight index, f=1,2,……F the departure time of flight f at the local place where the manufacturing plant is located the arrival time of flight f at the destination; Af NCf the transportation cost for per unit product which allocated to normal capacity area of flight f; SCf the transportation cost for per unit product which allocated to special capacity area of flight f; the available normal capacity of flight f; NCapf SCapf the available special capacity of flight f; Qi the quantity of order i; αi the delivery earliness penalty cost (/unit/hour) of order i; βi the delivery tardiness penalty cost (/unit/hour) of order i; di the due date of order i; pi the priority of order i; WTi the waiting time of order i between assembly manufacturing and transportation; PEif the per unit delivery earliness penalty cost for order i when it is transported by flight f; PEif = Max(0,di-Af)* αi (1) PLif the per unit delivery tardiness penalty cost for order i when it is transported by flight f; PLif = Max(0,Af-di)* βi (2) Zif the quantity of order i allocated to flight f; Xif the quantity of the portion of order i allocated to flight f’s normal capacity area; Yif the quantity of the portion of order i allocated to flight f’s special capacity area PR the production rate of assembly manufacturing Desi the order i’s destination Desf the flight f’s destination B a large number |B| the absolute value of B i f Df The ILP model for the multi-destination transportation allocation problem is expressed as follows: for all i, f (4) X if + Yif = Z if B * X if * | Des i − Des f |< 1 (5) B * Yif * | Des i − Des f |< 1 (6) ∑X if ≤ NCap f for all f (7) ≤ SCap f for all f (8) i ∑Y if i ∑ (X if +Yif ) = Qi for all i (9) f f ∑∑ f =1 i ( X if +Yif ) ≤ D f PR for all f (10) (11) X if + Yif = Z if The decision variables are: Xif, Yif, and Zif. All decision variables are non-negative integer variables. The objective is to minimize overall total cost which consists of total transportation cost for the orders allocated to the normal flight capacity, total transportation cost for orders allocated to the special flight capacity, total delivery earliness penalty cost and total delivery tardiness penalty cost. Constraint (4) ensures that the quantity of the proportion of order i allocated into flight f consists of quantities of the proportion of order i allocated into normal capacity area of flight f and the proportion of order i allocated to special capacity area of flight f. Constraints (5) and (6) ensures that if order i and flight f have different destination, order i can not be allocated to flight f. Constraint (7) ensures that the normal capacity of flight f is not exceeded. Constraint (8) ensures that the special capacity of flight f is not exceeded. Constraint (9) ensures that order i is completely allocated. Constraint (10) ensures that allocated orders do not exceed production capacity. It ensures that allocated quantity can be supplied based on assembly capacity. Fig 1. Equality of air transportation problem (order split allowed) to the unbalanced transportation problem. A. Complexity analysis of the transportation allocation problem In this section, we establish the equality of the above air transportation allocation problem with the unbalanced transportation problem. In general, a transportation problem is specified by three elements: a set of supply points, a set of demand points, cost of shipping each unit from a supply point to a demand point. If demand larger than supply, or supply larger than demand, it is called an unbalanced transportation problem. For the above problem, each order can be taken as a supply point and each flight’s capacity can be taken as a demand point inline with the transportation problem. It is noted that the normal capacity and special capacity of each flight are considered as two demand points at different transportation cost. The unit transportation cost from a supply point A to a demand point B is the sum of the unit transportation cost and the unit delivery earliness (or tardiness) penalty cost of order A when transported by flight B. As total quantity of all orders is less than total capacity of all flights, it is an unbalanced transportation problem with supply less than demand. The equality establishment is also denoted in Figure 1. V. PARALLEL MACHINE ASSEMBLY SCHEDULING PROBLEM This section models the assembly scheduling problem as a parallel machine scheduling problem, and studies the synchronization of the order completions with the departure times of the flights to multiple destinations. We use the term ‘job’ to refer customer order in the following sections. To address a more general problem, the machines are assumed to be unrelated machines. For n independent jobs (or orders) J={J1, J2,…, Jn}to be scheduled on the m unrelated machines, there is a processing time pjm associated with each pair of job and machine. The assembly due-dates for the jobs are the departure time of the flights. Hence we consider to schedule the jobs grouped based on their assembly due-date. In this work we assume that only one flight departs on a given assembly due-date. The parallel station scheduling problem is decomposed into F parallel machine scheduling problems (as we have F due-dates) such that a production schedule is associated with each assembly due-date. Sequence for jobs in each group on m parallel machines on a particular due-date is obtained by solving an unrelated parallel machine problem. We assume sufficient accumulated assembly production capacity, and the objective is to complete each order on or before its assembly due date, and further, the lateness for each order is not suppose to happen. Therefore, the objective is to minimize total weighted earliness. The common due-date parallel machine problem is addressed in literature [13], [14] is solvable optimally when earliness penalties are job independent. To achieve synchronization, one more parameter of unavailable time Ulf is introduced for each machine on each stage. Sometimes the jobs scheduled for flight f may start even before the departure time of the f-1 the flight, when the total processing time of all jobs scheduled for the flight f is greater than the production time available between departure times of fights f and f-1. Hence some jobs scheduled for fight f will occupy a certain amount of processing time on each machine in the assembly time available for fight f-1 as shown in Figure 2. Let us denote the scheduling of nf jobs (belonging group f) on m machines for fight f as PMf. Let the r1l and r2l+1 is the release time of the orders to be processed first on machine l and l+1 in job-group f, which are ahead of the departure time of flight f-1 denoted by df-1. The jobs in machine l will be processed from time r1l till df. The jobs in group f-1 which is prior to group f cannot be processed between times r1l and df-1 on machine l. Thus, (df-1 - r1l) is the unavailable time on machine l in for (f-1)th job group. Similarly, (df-1 – r2l) is the unavailable time on machine l+1. The, unavailable time of the machines for each job group is determined by the release times of first scheduled job on each machine in next job group. This necessitates us to solve starting from the last job group with has the set of jobs to be transported by the last flight in the planning period. Machines M1 Ml Ml+1 Ml+2 r1l 2l+1 df-1 df TimeÆ Fig. 2. Demonstration of machine unavailable time concept A. Parallel machine scheduling with job independent weights The unrelated parallel machine scheduling problem for the objective of minimizing mean absolute deviation from a common due-date with job independent weights can be formulated as a transportation problem [14]. The parallel machine scheduling problem presented in this section mainly has two differences from the above problem. It minimizes total earliness without tardiness. In addition, a parameter of machine unavailable time is introduced in this problem. Kubiak et al. [14] formulation is extended in this research by considering the two differences in formulating the presented problem as a transportation problem. A transportation problem is specified by a set of supply points, a set of demand points, and the shipping costs from each supply point to each demand point. Before giving the formulation of the present scheduling problem, the following notations are defined: xilk is equal to 1 if job i is processed on machine l and finishes on or before the due-date, and there are k-1 jobs processed after it; pil the processing time of job i on machine l; df the common due date for sub-problem f, i.e., departure time of flight f; the unavailable time on machine l in stage f; the penalty cost for job earliness. Ulf w On each machine, a job can be completed on the duedate or before it. The waiting cost could be taken as the finished goods inventory cost before transportation. In this case, penalty cost is assumed to be identical for all orders. It is noted that there are nfm positions for each job and each one could be assigned to among them m parallel machines for each sub-problem f. The parallel machine scheduling problem with job independent weights can be viewed as a transportation problem by assuming nf jobs equivalent to nf supply points. nfm possible assignment positions for each job are equivalent to nfm demand points. For a job i, when xilk =1, the waiting time of job i after its completion is k ∑ pil , where k-1 jobs are scheduled on machine l + Max(d − U lf x, 0)]wxilk (11) ∀ i=1, 2, …, nf (12) The algorithm for scheduling N jobs on m parallel machines for F flights is presented below: Step 1: Sequence and group the jobs based on duedates using Earliest Due-Date (EDD) rule. Let f = F, where F is the number of groups of jobs determined based of the number of flights considered in the planning period. Step 2: Sequence nf jobs in the group f on m parallel machines by solving the problem as a transportation model. Step 3: Schedule the last job in the group f such that Ci,f = df. The last jobs on m machines are scheduled to complete at df. Step 4: If df > r1l,f+1 then Cil,f = r1l,f+1. Step 5: Set ril,f = ril,f+1 –pj+1. i=i-1. Step 4: Schedule the next last job such that Cil,f = r i+1l,f –pi+1. Step 4.1: Go to step 4 unless all jobs in the group are scheduled. Step 5: If (f = = 0) go to next step else f=f-1 go to step 2. Step 6: Calculate each job’s waiting time using the information on jobs’ completion time and transportation departure time. (13) The above algorithm generates optimal schedule by solving F transportation problems. (14) VI. CONCLUSION i =1 between its completion and the departure time of the assigned flight. It can be taken as the shipping cost from supply point i to demand point l. A job can only be assigned to one position, and it can be viewed that each supply point can only supply one demand point. Other the other side, each position only needs one job to be assigned to, which denotes that the demand for each demand point is 1. Since nf is less than nfm, the formulation is a transportation problem with total supply less than total demand. The 0-1 Linear programming formulation which gives the sequence for the set of jobs associated with each assembly due-date is presented below: nf Min m nf ∑∑∑[(k − 1) p i =1 l =1 k =1 il Subject to m nf ∑∑ x l =1 k =1 m ∑x i =1 ilk ilk =1 ≤1 xilk ≥ 0 to be scheduled to finish on or before the due date. So there should be no inserted idle time between each two jobs on each machine to minimize total earliness. And each job’s release time is determined by the start time of the next job on the same machine. The last job in f-j-1 job-group is assigned on machine l, after solving stage f-j, should be finished either at the common due-date (departure time of its flight), if the due-date is earlier than the release time of the first job in job-group f-j. Otherwise, the last job is to be finished at the release time of the first job in job-group f-j for the corresponding machine. l=1, 2, …, m, k=1, 2, …, nf. The decision variable is xilk. The objective is to minimize total earliness, or to say in other words, to minimize total waiting time. In addition, if each machine has an unavailable time Ulf, an additional waiting time of Ulf should be included in waiting time of order i. It can be viewed as additional fixed transportation cost for transporting from supply points to the particular demand point l. Constraint (12) ensures that each job is assigned to a position on a machine. Constraint (13) ensures that each position on each machine has at most one job assigned to. The job assignment to each machine and the sequence on each machine are determined by solving f transportation problems for each job-group. The sequence for jobs on fth group is obtained first followed by f-1th and so on. All jobs in each job group share a common due-date and they have In this paper we present an optimal methodology for synchronized scheduling of production assembly with air transportation to achieve accurate delivery with minimized cost in consumer electronics supply chain (CESC). The overall problem is decomposed into two sub-problems which consist of an air transportation allocation problem and an assembly scheduling problem. Both the air transportation problem and parallel machine assembly scheduling problem are found to have the structure of a general transportation problem. Formulations and exact algorithms are presented to achieve synchronization of one with another to achieve deliveries with minimized delivery cost. REFERENCES [1] Y. Monden, Toyota Production Systems, Industrial Engineering and Management Press, Norcross, GA, 1983. [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] F. T. S. Chan, and S. H. 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Emmons, “Scheduling to a common due date on parallel uniform processors”, Naval Research Logistics Quarterly, vol. 34, pp. 803– 810, 1987. W. Kubiak, S. Lou and S. Sethi, “Equivalence of mean flow time problems and mean absolute deviation problems”, Operations Research Letters, vol. 9, pp. 371-374, 1990. Viswanath Kumar Ganesan is a Research Fellow in Singapore MIT Alliance, Nanyang Technological University Singapore. He received is Ph. D and Masters degree from Indian Institute of Technology Madras, India and PSG College of Technology Coimbatore, India respectively. His research interests include combinatorial optimization and heuristic search methods with application to production scheduling problems. Kunpeng Li is a Ph.D. student in the Center for Supply Chain Management, School of Mechanical and Production Engineering, Nanyang Technological University, Singapore. He received his Bachelors of Engineering in 2001 from Huazhong University of Science and Technology, P. R. China. His research interests are in the areas of synchronized scheduling of production and transportation, and heuristic searching methods. Appa Iyer Sivakumar is an Associate Professor in the School of Mechanical and Production Engineering at Nanyang Technological University, Singapore and a Fellow of Singapore MIT Alliance. Prior to this he was at Gintic Institute of Manufacturing Technology Singapore. His research interests are in the area of simulation based optimization of manufacturing performance and dynamic scheduling. He has held various management positions for nine years in Lucas Systems and Engineering and Lucas Automotive, UK. He received a Bachelors of Engineering and a Ph. D from University of Bradford UK.