Modeling uncertain multi-objective production and outbound distribution scheduling problem with customised products

Given a closer match to user preferences, the customised products have become increasingly prevalent and can benefit both manufacturers and consumers. This paper considers a production and outbound distribution scheduling (PODS) problem of a three-tier supply chain for customised products. To integrate production and outbound distribution operations, we balance three aspects of operation performance: revenue-, environment- and time-based. A globalised robust optimisation (GRO) model that explicitly incorporates transportation costs and greenhouse emissions uncertainty is presented. The globalised robustness of uncertain parameters is also considered via the inner and outer uncertainty sets when the data fluctuation information is beyond the support set. A case study on IKEA in China is then conducted to demonstrate the modelling advantage of the GRO method in terms of solution quality. The computational results and comparative study reveal the applicability of the proposed model and method to solve the PODS problem under uncertainty. The novelty of this research lies in the fact that it incorporates the complex uncertainty into PODS operations of the customised products. By integrating the multi-objective framework and GRO method simultaneously, this study obtains the optimal schemes for production and delivery, further offering valuable policy insights for decision-makers.Highlights A multi-objective GR optimisation model is developed for PODS problem with customised products.The computationally tractable formulation of GR-PODS model with uncertain parameters is derived.A realistic case on IKEA in China is studied to verify the effectiveness of model and approach.