Integrated machine scheduling and vehicle routing with time windows

This paper integrates production and outbound distribution scheduling in order to minimize total tardiness. The overall problem consists of two subproblems. The first addresses scheduling a set of jobs on parallel machines with machine‐dependent ready times. The second focusses on the delivery of completed jobs with a fleet of vehicles which may differ in their loading capacities and ready times. Job‐dependent processing times, delivery time windows, service times, and destinations are taken into account. A genetic algorithm approach is introduced to solve the integrated problem as a whole. Two main questions are examined. Are the results of integrating machine scheduling and vehicle routing significantly better than those of classic decomposition approaches which break down the overall problem, solve the two subproblems successively, and merge the subsolutions to form a solution to the overall problem? And if so, is it possible to capitalize on these potentials despite the complexity of the integrated problem? Both questions are tackled by means of a numerical study. The genetic algorithm outperforms the classic decomposition approaches in case of small‐size instances and is able to generate relatively good solutions for instances with up to 50 jobs, 5 machines, and 10 vehicles.