Inventory routing problem with non-stationary stochastic demands

In this paper we solve Stochastic Periodic Inventory Routing Problem (SPIRP) when the accuracy of expected demand is changing among the periods. The variability of demands increases from period to period. This variability follows a certain rate of uncertainty. The uncertainty rate shows the change in accuracy level of demands during the planning horizon. To deal with the growing uncertainty, we apply a safety stock based SPIRP model with different levels of safety stock. To satisfy the service level in the whole planning horizon, the level of safety stock needs to be adjusted according to the demand's variability. In addition, the behavior of the solution model in long term planning horizons for retailers with different demand accuracy is taken into account. We develop the SPIRP model for one retailer with an average level of demand, and standard deviation for each period. The objective is to find an optimum level of safety stock to be allocated to the retailer, in order to achieve the expected level of service, and minimize the costs. We propose a model to deal with the uncertainty in demands, and evaluate the performance of the model based on the defined indicators and experimentally designed cases

On green routing and scheduling problem

The vehicle routing and scheduling problem has been studied with much interest within the last four decades. In this paper, some of the existing literature dealing with routing and scheduling problems with environmental issues is reviewed, and a description is provided of the problems that have been investigated and how they are treated using combinatorial optimization tools

Job Selection in a Network of Autonomous UAVs for Delivery of Goods

This article analyzes two classes of job selection policies that control how a network of autonomous aerial vehicles delivers goods from depots to customers. Customer requests (jobs) occur according to a spatio-temporal stochastic process not known by the system. If job selection uses a policy in which the first job (FJ) is served first, the system may collapse to instability by removing just one vehicle. Policies that serve the nearest job (NJ) first show such threshold behavior only in some settings and can be implemented in a distributed manner. The timing of job selection has significant impact on delivery time and stability for NJ while it has no impact for FJ. Based on these findings we introduce a methodological approach for decision-making support to set up and operate such a system, taking into account the trade-off between monetary cost and service quality. In particular, we compute a lower bound for the infrastructure expenditure required to achieve a certain expected delivery time. The approach includes three time horizons: long-term decisions on the number of depots to deploy in the service area, mid-term decisions on the number of vehicles to use, and short-term decisions on the policy to operate the vehicles

Distribution planning in a weather-dependent scenario with stochastic travel times: a simheuristics approach

In real-life logistics, distribution plans might be affected by weather conditions (rain, snow, and fog), since they might have a significant effect on traveling times and, therefore, on total distribution costs. In this paper, the distribution problem is modeled as a multi-depot vehicle routing problem with stochastic traveling times. These traveling times are not only stochastic in nature but the specific probability distribution used to model them depends on the particular weather conditions on the delivery day. In order to solve the aforementioned problem, a simheuristic approach combining simulation within a biased-randomized heuristic framework is proposed. As the computational experiments will show, our simulation-optimization algorithm is able to provide high-quality solutions to this NP-hard problem in short computing times even for large-scale instances. From a managerial perspective, such a tool can be very useful in practical applications since it helps to increase the efficiency of the logistics and transportation operations.Peer ReviewedPostprint (published version

Distribution planning in a weather-dependent scenario with stochastic travel times: a simheuristics approach

In real-life logistics, distribution plans might be affected by weather conditions (rain, snow, and fog), since they might have a significant effect on traveling times and, therefore, on total distribution costs. In this paper, the distribution problem is modeled as a multi-depot vehicle routing problem with stochastic traveling times. These traveling times are not only stochastic in nature but the specific probability distribution used to model them depends on the particular weather conditions on the delivery day. In order to solve the aforementioned problem, a simheuristic approach combining simulation within a biased-randomized heuristic framework is proposed. As the computational experiments will show, our simulation-optimization algorithm is able to provide high-quality solutions to this NP-hard problem in short computing times even for large-scale instances. From a managerial perspective, such a tool can be very useful in practical applications since it helps to increase the efficiency of the logistics and transportation operations.Peer ReviewedPostprint (published version

A Column Generation Approach to the Capacitated Vehicle Routing Problem with Stochastic Demands

In this article we introduce a new exact solution approach to the Capacitated Vehicle Routing Problem with Stochastic Demands (CVRPSD). In particular, we consider the case where all customer demands are distributed independently and where each customer’s demand follows a Poisson distribution. The CVRPSD can be formulated as a Set Partitioning Problem. We show that, under the above assumptions on demands, the associated column generation subproblem can be solved using a dynamic programming scheme which is similar to that used in the case of deterministic demands. To evaluate the potential of our approach we have embedded this column generation scheme in a branch-and-price algorithm. Computational experiments on a large set of test instances show promising resultsRouting; Stochastic programming; Logistics; Branch and Bound; Dynamic programming

The Q(s,S) control policy for the joint replenishment problem extended to the case of correlation among item-demands

We develop an algorithm to compute an optimal Q(s,S) policy for the joint replenishment problem when demands follow a compound correlated Poisson process. It is a non-trivial generalization of the work by Nielsen and Larsen (2005). We make some numerical analyses on two-item problems where we compare the optimal Q(s,S) policy to the optimal uncoordinated (s,S) policies. The results indicate that the more negative the correlation the less advantageous it is to coordinate. Therefore, in some cases the degree of correlation determines whether to apply the coordinated Q(s,S) policy or the uncoordinated (s,S) policies. Finally, we compare the Q(s,S) policy and the closely connected P(s,S) policy. Here we explain why the Q(s,S) policy is a better choice if item-demands are correlated.joint replenishment problem; compound correlated Poisson process

Analysis of adaptive algorithms for an integrated communication network

Techniques were examined that trade communication bandwidth for decreased transmission delays. When the network is lightly used, these schemes attempt to use additional network resources to decrease communication delays. As the network utilization rises, the schemes degrade gracefully, still providing service but with minimal use of the network. Because the schemes use a combination of circuit and packet switching, they should respond to variations in the types and amounts of network traffic. Also, a combination of circuit and packet switching to support the widely varying traffic demands imposed on an integrated network was investigated. The packet switched component is best suited to bursty traffic where some delays in delivery are acceptable. The circuit switched component is reserved for traffic that must meet real time constraints. Selected packet routing algorithms that might be used in an integrated network were simulated. An integrated traffic places widely varying workload demands on a network. Adaptive algorithms were identified, ones that respond to both the transient and evolutionary changes that arise in integrated networks. A new algorithm was developed, hybrid weighted routing, that adapts to workload changes