Date of Award

8-2014

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Legacy Department

Industrial Engineering

Committee Member

Dr. Scott J. Mason, Committee Chair

Committee Member

Dr. William G. Ferrell

Committee Member

Dr. Mary E. Kurz

Committee Member

Dr. Maria E. Mayorga

Abstract

The automotive industry is one of the most important economic sectors, and the efficiency of its supply chain is crucial for ensuring its profitability. Developing and applying techniques to optimize automotive supply chains can lead to favorable economic outcomes and customer satisfaction. In this dissertation, we develop integrated models and algorithms for automotive supply chain optimization. Our objective is to explore methods that can increase the competitiveness of the automotive supply chain via maximizing efficiency and service levels. Based on interactions with an automotive industry supplier, we define an automotive supply chain planning problem at a detailed operational level while taking into account realistic assumptions such as sequence-dependent setups on parallel machines, auxiliary resource assignments, and multiple types of costs. We model the research problem of interest using mixed-integer linear programming.

Given the problem’s NP-hard complexity, we develop a hybrid metaheuristic approach, including a constructive heuristic and an effective encoding-decoding strategy, to minimize the total integrated cost of production setups, inventory holding, transportation, and production outsourcing. Furthermore, since there are often conflicting objectives of interest in automotive supply chains, we investigate simultaneously optimizing total cost and customer service level via a multiobjective optimization methodology. Finally, we analyze the impact of adding an additional transportation mode, which offers a cost vs. delivery time option to the manufacturer, on total integrated cost. Our results demonstrate the promising performance of the proposed solution approaches to analyze the integrated cost minimization problem to near optimality in a timely manner, lowering the cost of the automotive supply chain. The proposed bicriteria, hybrid metaheuristic offers decision makers several options to trade-off cost with service level via identified Pareto-optimal solutions. The effect of the available additional transportation mode’s lead time is found to be bigger than its cost on the total integrated cost measure under study.

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