Modeling and solving the multi-period inventory routing problem with constant demand rates

The inventory routing problem (IRP) is one of the challenging optimization problems in supply chain logistics. It combines inventory control and vehicle routing optimization. The main purpose of the IRP is to determine optimal delivery times and quantities to be delivered to customers, as well as optimal vehicle routes to distribute these quantities. The IRP is an underlying logistical optimization problem for supply chains implementing vendor-managed inventory (VMI) policies, in which the supplier takes responsibility for the management of the customers' inventory. In this paper, we consider a multi-period inventory routing problem assuming constant demand rates (MP-CIRP). The proposed model is formulated as a linear mixed-integer program and solved with a Lagrangian relaxation method. The solution obtained by the Lagrangian relaxation method is then used to generate a close to optimal feasible solution of the MP-CIRP by solving a series of assignment problems. The numerical experiments carried out so far show that the proposed Lagrangian relaxation approach nds quite good solutions for the MP-CIRP and in reasonable computation times

Iterative algorithm for lane reservation problem on transportation network

International audienceIn this paper, we study an NP-hard lane reservation problem on transportation network. By selecting lanes to be reserved on the existing transportation network under some special situations, the transportation tasks can be accomplished on the reserved lanes with satisfying the condition of time or safety. Lane reservation strategy is a flexible and economic method for traffic management. However, reserving lanes has impact on the normal traffic because the reserved lanes can only be passed by the special tasks. It should be well considered choosing reserved lanes to minimize the total traffic impact when applying the lane reservation strategy for the transportation tasks. In this paper, an integer linear program model is formulated for the considered problem and an optimal algorithm based on the cut-and-solve method is proposed. Some new techniques are developed for the cut-and-solve method to accelerate the convergence of the proposed algorithm. Numerical computation results of 125 randomly generated instances show that the proposed algorithm is much faster than a MIP solver of commercial software CPLEX 12.1 to find optimal solutions on average computing time

On the inventory routing problem with stationary stochastic demand rate

One of the most significant paradigm shifts of present business management is that individual businesses no longer participate as solely independent entities, but rather as supply chains (Lambert and Cooper, 2000). Therefore, the management of multiple relationships across the supply chain such as flow of materials, information, and finances is being referred to as supply chain management (SCM). SCM involves coordinating and integrating these multiple relationships within and among companies, so that it can improve the global performance of the supply chain. In this dissertation, we discuss the issue of integrating the two processes in the supply chain related, respectively, to inventory management and routing policies. The challenging problem of coordinating the inventory management and transportation planning decisions in the same time, is known as the inventory routing problem (IRP). The IRP is one of the challenging optimization problems in logis-tics and supply chain management. It aims at optimally integrating inventory control and vehicle routing operations in a supply network. In general, IRP arises as an underlying optimization problem in situations involving simultaneous optimization of inventory and distribution decisions. Its main goal is to determine an optimal distribution policy, consisting of a set of vehicle routes, delivery quantities and delivery times that minimizes the total inventory holding and transportation costs. This is a typical logistical optimization problem that arises in supply chains implementing a vendor managed inventory (VMI) policy. VMI is an agreement between a supplier and his regular retailers according to which retailers agree to the alternative that the supplier decides the timing and size of the deliveries. This agreement grants the supplier the full authority to manage inventories at his retailers'. This allows the supplier to act proactively and take responsibility for the inventory management of his regular retailers, instead of reacting to the orders placed by these retailers. In practice, implementing policies such as VMI has proven to considerably improve the overall performance of the supply network, see for example Lee and Seungjin (2008), Andersson et al. (2010) and Coelho et al. (2014). This dissertation focuses mainly on the single-warehouse, multiple-retailer (SWMR) system, in which a supplier serves a set of retailers from a single warehouse. In the first situation, we assume that all retailers face a deterministic, constant demand rate and in the second condition, we assume that all retailers consume the product at a stochastic stationary rate. The primary objective is to decide when and how many units to be delivered from the supplier to the warehouse and from the warehouse to retailers so as to minimize total transportation and inventory holding costs over the finite horizon without any shortages

Characterizing capital and operational tradeoffs resulting from fiber-to-the-home optical network architecture choice

Thesis (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Materials Science and Engineering, 2009.Cataloged from PDF version of thesis.Includes bibliographical references (p. 127-128).This thesis explores the impact of relative lifecycle cost tradeoffs on technology strategy, and characterizes two factors driving these costs: population demographics, and uncertainty in component costs. The methodology developed consists of three novel components which address gaps in the current literature in the areas of large-scale network design, multi-attribute population characterization, and cost modeling. Three technologies representing near, mid, and long-term fiber-to-the-home gigabit passive optical network solutions, and seven implementation strategies are dimensioned for two significantly different population demographics, each representing large coverage regions containing millions of subscribers. The methodology is able to successfully characterize how relative network topologies changed as a function of population attributes, revealing complex cost tradeoffs between technology strategies.by Thomas Rand-Nash.S.M