Discipline of Business Analytics

Revised delivery-time quotation in scheduling with outsourcing and tardiness penalties

Professor George Steiner, McMaster University

12th Apr 2013  11:00 am - Room 498 Merewether Building H04

There are many situations in supply chain scheduling when the supplier finds it impossible to meet the promised due dates for some orders. We present a model for the rescheduling of orders with simultaneous assignment of attainable revised due dates to minimize due date escalation and tardiness penalties for the supplier. The model can also be used to determine which orders should be outsourced if this option is available. We show that the problem is equivalent to minimizing the total tardiness with rejection with respect to the original due dates. We prove that the problem is NP-hard and present a pseudopolynomial algorithm for it. We also present a fully polynomial time approximation scheme for the problem.