Multi-Product Multi-Vehicle Inventory Routing ProblemWith Mixed Integer Linear Programming (original) (raw)
Related papers
A Mixed Integer Programming Model for the Production-Inventory-Distribution-Routing Problem
2015 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), 2015
In this paper, an under development mixed-integer programming model is presented and used to solve the Production-Inventory-Distribution-Routing Problem (PIDRP), the main objective is to minimize the total cost of production, inventory, and transportation without violating the demand fulfillment policy. The proposed model deals with multiple products with different characteristics, split deliveries, a heterogeneous fleet of vehicles, and a route limitation for each vehicle. The main contribution of this work is the validation of the mathematical model and testing it for solving small-sized instances from literature.
Modeling inventory routing problems in supply chains of high consumption products
European Journal of Operational Research, 2006
Given a distribution center and a set of sales-points with their demand rates, the objective of the inventory routing problem (IRP) is to determine a distribution plan that minimizes fleet operating and average total distribution and inventory holding costs without causing a stock-out at any of the sales-points during a given planning horizon. We propose a new model for the long-term IRP when demand rates are stable and economic order quantity-like policies are used to manage inventories of the sales-points. The proposed model extends the concept of vehicle routes (tours) to vehicle multi-tours. To solve the nonlinear mixed integer formulation of this problem, a column generation based approximation method is suggested. The resulting sub-problems are solved using a savings-based approximation method. The approach is tested on randomly generated problems with different settings of some critical factors to compare our model using multi-tours as basic constructs to the model using simple tours as basic constructs.
Application of Transportation Model for Optimal Product Distribution Chain Management
2021
Many business organizations are operating at an unacceptable high distribution chain costs even as industrial competition continues to pose as a major challenge to business success. Linear programming devices can help organizations achieve efficiency. This research aims at establishing the impact of Transportation algorithm in optimal product distribution and scheduling of business organizations. In a field study of NOWAS Oil and Gas, data was significantly secondary sourced, resulting from indepth analysis of existing documented content materials on the subject. Practical application of the least cost method scheduling and North West Corner Rule method of an initial basic feasible solution was imminent. Revising that solution using the stepping stone method translated to an optimal distribution schedule and a minimum cost profit in yearly distribution schedule of Nowas Oil and Gas, Enugu. It is recommended that business organizations carryout careful analysis of their supply and de...
International Journal of Computer Applications, 2011
Coordination in supply chain plays an important role on the successful performance of all parts of supply chain. This paper studies an integrated distribution system in a three-echelon supply chain including a single plant, multiple distribution centers and a set of retailers with deterministic demands. Possibility of transferring goods between depots is taken into account. To solve the problem, first we formulate a mixed integer programming model to the overall system. Since solving mixed integer programming problems with optimization solvers is memory intensive and insufficient physical memory is one of the most common problems when running large size of these problems, we propose two approaches to solve the model and compare them. First approach is a constructive two-phase heuristic: The purpose of the first phase is to assign retailers to distribution centers and determine the source of inventory replenishment for each depot. After assigning retailers to the depots, sequence of routes for each depot is determined with a Simulated Annealing algorithm. Second approach is a Tabu search algorithm with different neighborhood structures that solve the model integrally, not in two phases. Computational results indicate the effectiveness of two proposed algorithms but when the integrated algorithm is used, better results achieved.
Application of mixed integer programming to a large-scale logistics problem
International Journal of Production Economics, 1994
Time based competition has a direct impact on logistics operations. Today, logistics costs are increasing rapidly, and tools must be developed to improve logistics operations and reduce its associated costs. This paper describes the developmeru, the application and the successful implementation of a mixed integer programming model for a real life logistics problem at NedCar, a car manufacturer in the Netherlands. The model determines the ordering dates and quantities of purchase pans given constraints on demand, transportation, packaging and inventory levels, in order to minimize logistics costs. Special consideration is given to reducing the model complexiry.
Practical inventory routing: A problem definition and an optimization method
Computing Research Repository - CORR, 2011
The global objective of this work is to provide practical optimization methods to companies involved in inventory routing problems, taking into account this new type of data. Also, companies are sometimes not able to deal with changing plans every period and would like to adopt regular structures for serving customers.
Perishable items such as food products, vegetables, flowers, ready-mixed concrete, blood and etc. are usually destroyed during production and delivery process, so to prevent spoilage of such products, these products must reach the customer at the appropriate time to the manufacturers. One of the effective factors in the timely delivery of various products to the customer is the choice of the optimal delivery route, which is referred to as the issue of vehicle routing. The issue of vehicle routing for the distribution of various products is one of the most widely used issues in the field of operations research, which is very useful in planning the transportation fleet. In this Research, we seek to determine the operational plan of homogeneous vehicles with limited capacity to send products from the central warehouse to a group of customers that are geographically dispersed in different areas, so that the number of vehicles and travel costs are minimized. Most existing studies on decision-making issues have assumed the issue in an environment of conclusive data. However, in many cases it is observed that it is difficult to determine the exact values for the parameters and the values must be fuzzy. As a result, one of the most important decisions to be made in the supply chain is the issue of efficiency and effectiveness of this chain along with parameters and variables with uncertainty. Uncertainty in the supply chain leads to non-optimization of decisions made on the assumption of uncertainty, so to match the uncertainty, some problem parameters such as travel time, shipping cost, as well as the start and end of customers' time windows in the chain Supplies are considered as fuzzy numbers. Due to the fact that the mentioned problem is a very complex problem and for its large dimensions we cannot find a suitable quality answer in a short time with accurate methods, so to solve this model on a smaller scale, Gams software has been used. Finally, to show the application of the proposed model in the real world, the issue of product distribution among customers in the Ports and Maritime Organization of Gilan Province (Bandar Anzali) has been investigated, which shows that distributors can use this method to reduce their operating costs.
Mixed integer formulation for multiproduct maritime inventory routing problems
Companies that want to market their products to the outer islands need a large-capacity transportation mode that can distribute the product to every place. Other important consideration is the cost of the company must be efficient. The most commonly used by transportation logistics company is the mode of sea transportation. This paper presents an optimization model for determining vessel travel routes by meeting demand and paying attention to inventory levels at each ports so that the company's costs are minimum. The problem is known as the maritime inventory routing problem (MIRP) and the delivered product can be just one type (single product) or it can be multiproduct. MIRP models are formulated using integer linear programming and numerically solved by the aid of MiniZinc IDE 2.1.5.
International Journal of Contemporary Economics and Administrative Sciences, 2019
It was aimed to minimize the total distance of the routes under the capacity constraint of the routes that a distributor company has drawn in the direction of the demands. To this end, a route to Gebze-based steel production and distribution was drawn up to meet all the demands of a fabrication plant. In order to determine the minimum total distance routes, the solution recommendation by adapting the Capacity Constrained Vehicle Routing Problem (CVRP) which is one of the basic route problems using Branch and Cut algorithm of 0-1 Integer Linear Programming (ILP) was introduced. Distances between the nodes that make up the route are measured via Google Maps. Optimal solutions were obtained by using LINDO computer software to solve the problem.
Journal of Physics: Conference Series, 2019
This paper discussed about optimization production and distribution problem of tempe using Production Routing problem with Perishable Inventory (PRPPI) models with First Produce, First Deliver (FPFD) and First Produce First Selling (FPFS) inventory management policy. Tempe is a food made from soy fermentation and distributed from the depot to retailers. There are three retailers, namely Perumnas market, Sekip market and Kebon Semai market respectively as retailer 1, 2 and 3, and Ana depot is defined as retailer 0. An exact Branch and Bound algorithm was developed and solved by Lingo 17.0 Software. The results of minimum cost production and distribution retailer 0 was 69,174 rupiah, optimal amount of tempe production 34 pieces. The shipping routes starting from retailer 0 to retailer 1, proceed to retailer 2 and then to retailer 3 finally return to retailer 0.