Optimization Models for Contemporary and Sustainable Production-Distribution Systems

This research program deals with the applications of optimization in advanced and sustainable production-distribution systems. The long-term objective is to investigate design, planning, and control issues in such systems in an era of Industry 4.0 and Hyperconnected Logistics. The three themes addressed in this Discovery Grant proposal are contemporary and relevant to current trends in industry and academia. The first theme of the research pertains to production planning and control for complex manufacturing in Industry 4.0 contexts such as aerospace and semiconductor manufacturing. The onerous quality requirements in such systems imply a high degree of rework and reentry at resource nodes, combined with a stochastic rate of production. Such systems are therefore modelled using either simulation or queuing network analysis to estimate what are known as clearing functions and embedding them in linear programming based aggregate production planning models. The second theme of this research proposal looks at the design of closed loop supply chains (CLSCs) with quality, pre-sorting and carbon emission considerations. Of particular interest is the decision on the size and number of presorting centres which can significantly reduce transportation costs and emissions. The third and final theme of this research proposal deals with the development of optimization models for design, evaluation, and operations in the Physical Internet (PI), a modular and distributed approach to global logistics. The idea behind PI is the use of modular containers from shipment centres called PI Hubs to exploit consolidation opportunities and reduce social costs of driving. This makes PI an interesting paradigm from both the economic and environmental perspectives. In summary, this proposal aims to extend the state-of-the-art in the application of optimization models in the Industry 4.0 and Hyperconnected Logistics context. Theme 1 of this proposal is aimed at production scheduling and planning in Industry 4.0 which is expected to be global, dynamic, smart, and connected. Theme 2 addresses the sustainability dimension of Industry 4.0 whose goal is environmentally-sustainable manufacturing through green processes, products, and supply chains. Theme 3 further extends this research to the logistics realm which aligns itself well with Industry 4.0 in the sense that it is an open global logistics system founded on physical, digital, and operational interconnectivity and interoperability. The specific optimization tools and techniques developed in this research thus have a contextual focus and will expand knowledge while retaining both academic research and industry practice relevance. The potential benefits to Canada include a high-impact internationally competitive research program, potential R&D applications based on the tools and technologies developed, training of HQP, and an increase in participation of women in IE/OR research.