A matheuristic approach to the integration of three-dimensional Bin Packing Problem and vehicle routing problem with simultaneous delivery and pickup

This work presents a hybrid approach to solve a distribution problem of a Portuguese company in the automotive industry. The objective is to determine the minimum cost for daily distribution operations, such as collecting and delivering goods to multiple suppliers. Additional constraints are explicitly considered, such as time windows and loading constraints due to the limited capacity of the fleet in terms of weight and volume. An exhaustive review of the state of the art was conducted, presenting different typology schemes from the literature for the pickup and delivery problems in the distribution field. Two mathematical models were integrated within a matheuristic approach. One model reflects the combination of the Vehicle Routing Problem with Simultaneous Delivery and Pickup with the Capacitated Vehicle Routing Problem with Time Windows. The second one aims to pack all the items to be delivered onto the pallets, reflecting a three-dimensional single bin size Bin Packing Problem. Both formulations proposed—a commodity-flow model and a formulation of the Three-Dimensional Packing Problem must be solved within the matheuristic. All the approaches were tested using real instances from data provided by the company. Additional computational experiments using benchmark instances were also performed.This research was funded by national funds through FCT—Fundação para a Ciência e a Tecnologia, under the projects UIDB/00285/2020, UIDB/00319/2020. This work was supported by the Research Unit on Governance, Competitiveness and Public Policies (UIDB/04058/2020) + (UIDP/04058/2020), funded by national funds through the Foundation for Science and Technology, IP. This work was also funded by FEDER in the frame of COMPETE 2020 under the project POCI-01-0247-FEDER-072638

The Two-Echelon Vehicle Routing Problem with Pickups, Deliveries, and Deadlines

This paper introduces the Two-Echelon Vehicle Routing Problem with Pickups, Deliveries, and Deadlines (2E-VRP-PDD), a new and emerging routing variant addressing the operations of logistics companies connecting consumers and suppliers in megacities. Logistics companies typically organize their logistics in such megacities via multiple geographically dispersed two-echelon distribution systems. The 2E-VRP-PDD is the practical problem that needs to be solved within each of such a single two-echelon distribution setting, thereby merging first and last-mile logistics operations. Specifically, it integrates forward flow, reverse flow, and vehicle time-synchronization aspects such as parcel time windows, satellite synchronization, and customer-dependent deadlines on the arrival of parcels at the hub. We solve the 2E-VRP-PDD with a tailored matheuristic that combines a newly developed Adaptive Large Neighborhood Search (ALNS) with a set-partitioning model. We show that our ALNS provides high-quality solutions on established benchmark instances from the literature. On a new benchmark set for the 2E-VRP-PDD, we show that loosening or tightening time restrictions, such as parcel delivery deadlines at the city hub, can lead to an 8.5% cost increase; showcasing the overhead associated with same-day delivery compared to next-day delivery operations. Finally, we showcase the performance of our matheuristic based on real-life instances which we obtained from our industry collaborator in Jakarta, Indonesia. On these instances, which we share publicly and consists of 1500 - 2150 customers, we show that using our ALNS can significantly improve current operations, leading to a 17% reduction in costs

Driver Routing and Scheduling with Synchronization Constraints

This paper investigates a novel type of driver routing and scheduling problem motivated by a practical application in long-distance bus networks. A key difference from other crew scheduling problems is that drivers can be exchanged between buses en route. These exchanges may occur at arbitrary intermediate stops such that our problem requires additional synchronization constraints. We present a mathematical model for this problem that leverages a time-expanded multi-digraph and derive bounds for the total number of required drivers. Moreover, we develop a destructive-bound-enhanced matheuristic that converges to provably optimal solutions and apply it to a real-world case study for Flixbus, one of Europe's leading coach companies. We demonstrate that our matheuristic outperforms a standalone MIP implementation in terms of solution quality and computational time and improves current approaches used in practice by up to 56%. Our solution approach provides feasible solutions for all instances within seconds and solves instances with up to 390 locations and 70 requests optimally with an average computational time under 210 seconds. We further study the impact of driver exchanges on personnel costs and show that allowing for such exchanges leads to savings of up to 75%

The multiple vehicle balancing problem

This paper deals with the multiple vehicle balancing problem (MVBP). Given a fleet of vehicles of limited capacity, a set of vertices with initial and target inventory levels and a distribution network, the MVBP requires to design a set of routes along with pickup and delivery operations such that inventory is redistributed among the vertices without exceeding capacities, and routing costs are minimized. The MVBP is NP\u2010hard, generalizing several problems in transportation, and arising in bike\u2010sharing systems. Using theoretical properties of the problem, we propose an integer linear programming formulation and introduce strengthening valid inequalities. Lower bounds are computed by column generation embedding an ad\u2010hoc pricing algorithm, while upper bounds are obtained by a memetic algorithm that separate routing from pickup and delivery operations. We combine these bounding routines in both exact and matheuristic algorithms, obtaining proven optimal solutions for MVBP instances with up to 25 stations

Mathematical optimization and learning models to address uncertainties and sustainability of supply chain management

As concerns about climate change, biodiversity loss, and pollution have become more widespread, new worldwide challenges deal with the protection of the environment and the conservation of natural resources. Thus, in order to empower sustainability and circular economy ambitions, the world has shifted to embrace sustainable practices and policies. This is carried out, primarily, through the implementation of sustainable business practices and increased investments in green technology. Advanced information systems, digital technologies and mathematical models are required to respond to the demanding targets of the sustainability paradigm. This trend is expanding with the growing interest in production and services sustainability in order to achieve economic growth and development while preventing their negative impact on the environment. A significant step forward in this direction is enabled by Supply Chain Management (SCM) practices that exploit mathematical and statistical modeling to better support decisions affecting both profitability and sustainability targets. Indeed, these targets should not be approached as competing goals, but rather addressed simultaneously within a comprehensive vision that responds adequately to both of them. Accordingly, Green Supply Chain Management (GSCM) can achieve its goals through innovative management approaches that consider sustainable efficiency and profitability to be clearly linked by the savings that result from applying optimization techniques. To confirm the above, there is a growing trend of applying mathematical optimization models for enhancing decision-making in pursuit of both environmental and profit performance. Indeed, GSCM takes into account many decision problems, such as facility location, capacity allocation, production planning and vehicle routing. Besides sustainability, uncertainty is another critical issue in Supply Chain Management (SCM). Considering a deterministic approach would definitely fail to provide concrete decision support when modeling those kinds of scenarios. According to various hypothesis and strategies, uncertainties can be addressed by exploiting several modeling approaches arising from statistics, statistical learning and mathematical programming. While statistical and learning models accounts variability by definition, Robust Optimization (RO) is a particular modeling approach that is commonly applied in solving mathematical programming problems where a certain set of parameters are subject to uncertainty. In this dissertation, mathematical and learning models are exploited according to different approaches and models combinations, providing new formulations and frameworks to address strategic and operational problems of GSCM under uncertainty. All models and frameworks presented in this dissertation are tested and validated on real-case instances