Inventory routing problem with stochastic demand and lead time

In the supply chain, the integration of the different processes is critical to obtain high levels of coordination. Inventory control and its distribution are two of these processes whose coordination have been demonstrated by researchers as key in order to gain efficiency and effectiveness. They affect the synchronization of the supply chain management. With the intention to contribute to the integration of these processes and improve the problems of demand variability, we propose an integration of operations research area and the help of metaheuristics in a multi-objective approach. The expected results are to reduce the costs associated with inventory and its distribution, as well as to reduce the uncertainty in making decisions based on demand. This thesis presents methods for obtaining and analyzing near optimally solutions for dynamic and stochastic inventory-routing problems. The methods include retailers selection and clustering methods, algorithms and experiments on benchmark instances. We focus on problems with one and several suppliers that serve several dispersal geographically retailers. The thesis contains four parts. In Part I, we focus on the literature review. We first provide an overview of the literature on problems related to the coordination of the inventory and its distribution. Then we make a point in four elements: information management, inventory policies, stochastic demand and optimization methods. Also, we provide a scientometric analysis of the documentation collected in the last ten years. We provide a thorough review of papers working with dynamic and stochastic demand. The contributions of this part are i) the review of papers working with stochastic demand and stochastic lead times focusing on its stochastic and multi-depot aspects, ii) identify critical factors for the performance of many logistics activities and industries, iii) have shown that studying the behavior of the demand and the lead time are essential in order to achieve a useful representation of the system to take proper decisions and iv) provide the trends and patterns in the research in IRP problems. In Part II, we focus on the methodology of the research and of development. We first introduce the problem, state of the science, the gaps in the literature, variables under study, the instruments applied and assumptions. The development methodology is presented by a general model to address this type of research proposed in this thesis. Here, the general development process, decomposition of the problem and how the possible solutions are explained.. The importance of the this chapter is provided an effective way to face IRP problems. In Part III, the foundations in formulations for IRP problems are proposed. We begin with the formulation of the TSP problems with variants for one and many suppliers, likewise for VRP and IRP problems. The contributions of the model presented here aim identifying the variables and mathematical models frequently used to deal with these problems. In Part IV, we perform a single criteria objective and multi-criteria analysis of the solutions for one and many suppliers instances. Our methods yield significant improvements over a competing algorithm. Our contributions are i) propose three new customer selection methods for a dynamic and stochastic inventory-routing vii problem, ii) perform a multi-criteria analysis of the solutions, comparing distribution versus inventory management, iii) perform a single criteria objective experiment on benchmark instances from the literature.En la cadena de suministro, la integración de los diferentes procesos que la conforman, es fundamental para obtener altos niveles de coordinación. El control del inventario y su distribución son dos de estos procesos, cuya coordinación ha sido demostrada por los investigadores como clave para lograr mejoras en eficiencia y efectividad. Estos a su vez, afectan la sincronización y la administración de la cadena de suministro. Con el propósito de contribuir en la integración de éstos procesos y mejorar los problemas derivados de la variabilidad de la demanda, se propone usar los fundamentos del área de investigación de operaciones y la ayuda de metaheurísticas en un enfoque multi-obejtivo. Los resultados esperados son reducir los costos asociados a los procesos de inventario y distribución, así como también reducir la incertidumbre en la toma de decisiones a partir de la demanda. Ésta tesis presenta métodos para el análisis y obtención de soluciones cercanas a las óptimas para problemas de inventario y routeo, dinámico y estocástico. Los métodos incluyen selección de retailers y métodos de clustering, algoritmos y experimentos en instancias de prueba disponibles en la literatura. Se hace énfasis en instancias de un solo proveedor y varios proveedores que sirven varios retailers distribuidos geográficamente. La tesis está organizada en cuatro partes. En la Parte I, se revisa la literatura, para ello, primero se presentan los problemas relacionados con la coordinación del inventario y su distribución. Ésta revisión resalta cuatro elementos que han sido identificados como claves en la literatura como son: la administración de la información, políticas de inventario, demanda estocástica y métodos de optimización. Luego, se presenta un análisis cienciometrico de la literatura encontrada en los últimos 10 años. La revisión de la documentación se realiza de manera exhaustiva trabajando con demanda dinámica y estocástica. Las contribuciones de esta parte son: i) proporcionar una revisión pertinente y actualizada de artículos que emplean demanda estocástica, enfatizando en sus elementos dinámicos y estocásticos, así como también en aspectos que permitan abordar problemas con múltiples depósitos, ii) identificar factores críticos para el desempeño de actividades logísticas, iii) Demostrar que el estudio de la demanda es esencial para lograr una representación útil del sistema, la cual influye en la toma de decisiones y iv) proporcionar tendencias y patrones en la investigación de problemas de IRP. En la Parte II se aborda la metodología de la investigación y de desarrollo. Primero, se presenta el problema, el estado de la ciencia y los gaps encontrados en la literatura. Luego se identifican las variables de estudio, los instrumentos aplicados y los supuestos utilizados. La metodología de desarrollo es presentada por medio de un modelo general para abordar éste tipo de investigaciones que nosotros proponemos en ésta tesis. Esta metodología aborda aspectos como: el procedimiento general de desarrollo, la descomposición del problema y la forma en que se prueban las posibles soluciones. En la Parte III, se presentan los fundamentos en la formulación de IRP. Primero se formulan los problemas TSP con variantes para un solo depósito y también paramúltiples depósitos, igualmente se hace para VRP e IRP. La contribución de los modelos presentados son la identificación de las variables y los modelos matemáticos que frecuentemente son usados para tratar con éste tipo de problemas. En la Parte IV se presentan dos experimentos. El primero para el análisis de instancias con uno sólo depósito y en el segundo para analizar instancias con múltiples depósitos. Los métodos usados producen mejoras sobre resultados obtanidos con algoritmos similares. Las contribuciones de ésta parte son: i) proponer tres nuevos métodos para la selección de retailers para IRP dinámicos y estocásticos, ii) realizar análisis multi-criterio de las soluciones, comparando la distribución con la administración del inventario y iii) realizar análisis de un solo objetivo sobre instancias de pruebas proporcionada por la literatura existente

Optimization of Location-Routing for the Waste Household Appliances Recycling Logistics under the Uncertain Condition

Waste household appliances and electronic products usually contain harmful substances which need scientific and reasonable collection, classification, processing, recovery and disposal to achieve sustainable and effective recycling and utilization. In recent years, due to the poor management of waste household appliances recycling logistics system, safety accidents occur frequently, which seriously harm the health and life safety of the society. This paper studies the risk management of recycling waste household appliances under uncertain conditions and establishes a risk measurement model under fuzzy population density. Considering the multi-stage and classification diversity of waste household appliances recycling logistics, the multi-objective location routing model and location - routing model are established respectively. Based on the model complexity analysis, the solution method of multi-objective model is designed. Finally, the validity of the model and algorithm is verified by examples and tests

Order Picking Problem: A Model for the Joint Optimisation of Order Batching, Batch Assignment Sequencing, and Picking Routing

Background: Order picking is a critical activity in end-product warehouses, particularly using the picker-to-part system, entail substantial manual labor, representing approximately 60% of warehouse work. Methods: This study develops a new linear model to perform batching, which allows for defining, assigning, and sequencing batches and determining the best routing strategy. Its goal is to minimise the completion time and the weighted sum of tardiness and earliness of orders. We developed a second linear model without the constraints related to the picking routing to reduce complexity. This model searches for the best routing using the closest neighbour approach. As both models were too complex to test, the earliest due date constructive heuristic algorithm was developed. To improve the solution, we implemented various algorithms, from multi-start with random ordering to more complex like iterated local search. Results: The proposed models were tested on a real case study where the picking time was reduced by 57% compared to single-order strategy. Conclusions: The results showed that the iterated local search multiple perturbation algorithms could successfully identify the minimum solution and significantly improve the solution initially obtained with the heuristic earliest due date algorithm

Effects of distribution planning systems on the cost of delivery in unique make-to-order manufacturing

This thesis investigates the effects of simulation through the use of a distribution planning system (DPS) on distribution costs in the setting of unique make-to-order manufacturers (UMTO). In doing so, the German kitchen furniture industry (GKFI) serves as an example and supplier of primary data. On the basis of a detailed market analysis this thesis will demonstrate that this industry, which mostly works with its own vehicles for transport, is in urgent need of innovative logistics strategies. Within the scope of an investigation into the current practical and theoretical use of DPS, it will become apparent that most known DPS are based on the application of given or set delivery tour constraints. Those constraints are often not questioned in practice and in theory nor even attempted to be omitted, but are accepted in day-to-day operation. This paper applies a different approach. In the context of this research, a practically applied DPS is used supportively for the removal of time window constraints (TWC) in UMTO delivery. The same DPS is used in ceteris paribus condition for the re-routing of deliveries and hereby supports the findings regarding the costliness of TWC. From this experiment emerges an overall cost saving of 50.9% and a 43.5% reduction of kilometres travelled. The applied experimental research methodology and the significance of the resulting savings deliver the opportunity to analyse the removal of delivery time window restrictions as one of many constraints in distribution logistics. The economic results of this thesis may become the basis of discussion for further research based on the applied methodology. From a practical point of view, the contributions to new knowledge are the cost savings versus the change of demand for the setting of TWC between the receiver of goods and the UMTO supplier. On the side of theoretical knowledge, this thesis contributes to filling the gap on the production – distribution problem from a UMTO perspective. Further contributions to knowledge are delivered through the experimental methodology with the application of a DPS for research in logistics simulation

Hybrid metaheuristics for solving multi-depot pickup and delivery problems

In today's logistics businesses, increasing petrol prices, fierce competition, dynamic business environments and volume volatility put pressure on logistics service providers (LSPs) or third party logistics providers (3PLs) to be efficient, differentiated, adaptive, and horizontally collaborative in order to survive and remain competitive. In this climate, efficient computerised-decision support tools play an essential role. Especially, for freight transportation, e efficiently solving a Pickup and Delivery Problem (PDP) and its variants by an optimisation engine is the core capability required in making operational planning and decisions. For PDPs, it is required to determine minimum-cost routes to serve a number of requests, each associated with paired pickup and delivery points. A robust solution method for solving PDPs is crucial to the success of implementing decision support tools, which are integrated with Geographic Information System (GIS) and Fleet Telematics so that the flexibility, agility, visibility and transparency are fulfilled. If these tools are effectively implemented, competitive advantage can be gained in the area of cost leadership and service differentiation. In this research, variants of PDPs, which multiple depots or providers are considered, are investigated. These are so called Multi-depot Pickup and Delivery Problems (MDPDPs). To increase geographical coverage, continue growth and encourage horizontal collaboration, efficiently solving the MDPDPs is vital to operational planning and its total costs. This research deals with designing optimisation algorithms for solving a variety of real-world applications. Mixed Integer Linear Programming (MILP) formulations of the MDPDPs are presented. Due to being NP-hard, the computational time for solving by exact methods becomes prohibitive. Several metaheuristics and hybrid metaheuristics are investigated in this thesis. The extensive computational experiments are carried out to demonstrate their speed, preciseness and robustness.Open Acces

Metaheuristic Approaches For Estimating In-Kind Food Donations Availability And Scheduling Food Bank Vehicles

Food banks provide services that allow households facing food insecurity to receive nutritious food items. Food banks, however, experience operational challenges as a result of constrained and uncertain supply and complex routing challenges. The goal of this research is to explore opportunities to enhance food bank operations through metaheuristic forecasting and scheduling practices. Knowledge discovery methods and supervised machine learning are used to forecast food availability at supermarkets. In particular, a quasi-greedy algorithm which selects multi-layer perceptron models to represent food availability is introduced. In addition, a new classification of the vehicle routing problem is proposed to manage the distribution and collection of food items. In particular, variants of the periodic vehicle routing problem backhauls are introduced. In addition to discussing model formulations for the routing problems, a hybrid genetic algorithm is introduced which finds good solutions for larger problem instances in a reasonable computation time

Two-Echelon Vehicle and UAV Routing for Post-Disaster Humanitarian Operations with Uncertain Demand

Humanitarian logistics service providers have two major responsibilities immediately after a disaster: locating trapped people and routing aid to them. These difficult operations are further hindered by failures in the transportation and telecommunications networks, which are often rendered unusable by the disaster at hand. In this work, we propose two-echelon vehicle routing frameworks for performing these operations using aerial uncrewed autonomous vehicles (UAVs or drones) to address the issues associated with these failures. In our proposed frameworks, we assume that ground vehicles cannot reach the trapped population directly, but they can only transport drones from a depot to some intermediate locations. The drones launched from these locations serve to both identify demands for medical and other aids (e.g., epi-pens, medical supplies, dry food, water) and make deliveries to satisfy them. Specifically, we present two decision frameworks, in which the resulting optimization problem is formulated as a two-echelon vehicle routing problem. The first framework addresses the problem in two stages: providing telecommunications capabilities in the first stage and satisfying the resulting demands in the second. To that end, two types of drones are considered. Hotspot drones have the capability of providing cell phone and internet reception, and hence are used to capture demands. Delivery drones are subsequently employed to satisfy the observed demand. The second framework, on the other hand, addresses the problem as a stochastic emergency aid delivery problem, which uses a two-stage robust optimization model to handle demand uncertainty. To solve the resulting models, we propose efficient and novel solution approaches

Designing new models and algorithms to improve order picking operations

Order picking has been identified as a crucial factor for the competitiveness of a supply chain because inadequate order picking performance causes customer dissatisfaction and high costs. This dissertation aims at designing new models and algorithms to improve order picking operations and to support managerial decisions on facing current challenges in order picking. First, we study the standard order batching problem (OBP) to optimize the batching of customer orders with the objective of minimizing the total length of order picking tours. We present a mathematical model formulation of the problem and develop a hybrid solution approach of an adaptive large neighborhood search and a tabu search method. In numerical studies, we conduct an extensive comparison of our method to all previously published OBP methods that used standard benchmark sets to investigate their performance. Our hybrid outperforms all comparison methods with respect to average solution quality and runtime. Compared to the state-of-the-art, the hybrid shows the clearest advantages on the larger instances of the existing benchmark sets, which assume a larger number of customer orders and larger capacities of the picking device. Finally, our method is able to solve newly generated large-scale instances with up to 600 customer orders and six items per customer order with reasonable runtimes and convincing scaling behavior and robustness. Next, we address a problem based on a practical case, which is inspired by a warehouse of a German manufacturer of household products. In this warehouse, heavy items are not allowed to be placed on top of light items during picking to prevent damage to the light items. Currently, the case company determines the sequence for retrieving the items from their storage locations by applying a simple S-shape strategy that neglects this precedence constraint. As a result, order pickers place the collected items next to each other in plastic boxes and sort the items respecting the precedence constraint at the end of the order picking process. To avoid this sorting, we propose a picker routing strategy that incorporates the precedence constraint by picking heavy items before light items, and we develop an exact solution method to evaluate the strategy. We assess the performance of our strategy on a dataset provided to us by the manufacturer. We compare our strategy to the strategy used in the warehouse of the case company, and to an exact picker routing approach that does not consider the given precedence constraint. The results clearly demonstrate the convincing performance of our strategy even if we compare our strategy to the exact solution method that neglects the precedence constraint. Last, we investigate a new order picking problem, in which human order pickers of the traditional picker-to-parts setup are supported by automated guided vehicles (AGVs). We introduce two mathematical model formulations of the problem, and we develop a heuristic to solve the NP-hard problem. In numerical studies, we assess the solution quality of the heuristic in comparison to optimal solutions. The results demonstrate the ability of the heuristic in finding high-quality solutions within a negligible computation time. We conduct several computational experiments to investigate the effect of different numbers of AGVs and different traveling and walking speed ratios between AGVs and order pickers on the average total tardiness. The results of our experiments indicate that by adding (or removing) AGVs or by increasing (or decreasing) the AGV speed to adapt to different workloads, a large number of customer orders can be completed until the respective due date