A new hybrid GA-PSO method for solving multi-period inventory routing problem with considering financial decisions

Integration of various logistical components in supply chain management, such as transportation, inventory control and facility location are becoming common practice to avoid sub-optimization in nowadays’ competitive environment. The integration of transportation and inventory decisions is known as inventory routing problem (IRP) in the literature. The problem aims to determine the delivery quantity for each customer and the network routes to be used in each period, so that the total inventory and transportation costs are to be minimized. On the contrary of conventional IRP that each retailer can only provide its demand from the supplier, in this paper, a new multi-period, multi-item IRP model with considering lateral trans-shipment, back-log and financial decisions is proposed as a business model in a distinct organization. The main purpose of this paper is applying an applicable inventory routing model with considering real world setting and solving it with an appropriate method.Peer Reviewe

Composite particle algorithm for sustainable integrated dynamic ship routing and scheduling optimization

Ship routing and scheduling problem is considered to meet the demand for various products in multiple ports within the planning horizon. The ports have restricted operating time, so multiple time windows are taken into account. The problem addresses the operational measures such as speed optimisation and slow steaming for reducing carbon emission. A Mixed Integer Non-Linear Programming (MINLP) model is presented and it includes the issues pertaining to multiple time horizons, sustainability aspects and varying demand and supply at various ports. The formulation incorporates several real time constraints addressing the multiple time window, varying supply and demand, carbon emission, etc. that conceive a way to represent several complicating scenarios experienced in maritime transportation. Owing to the inherent complexity, such a problem is considered to be NP-Hard in nature and for solutions an effective meta-heuristics named Particle Swarm Optimization-Composite Particle (PSO-CP) is employed. Results obtained from PSO-CP are compared using PSO (Particle Swarm Optimization) and GA (Genetic Algorithm) to prove its superiority. Addition of sustainability constraints leads to a 4–10% variation in the total cost. Results suggest that the carbon emission, fuel cost and fuel consumption constraints can be comfortably added to the mathematical model for encapsulating the sustainability dimensions

Dynamic vehicle routing problems: Three decades and counting

Since the late 70s, much research activity has taken place on the class of dynamic vehicle routing problems (DVRP), with the time period after year 2000 witnessing a real explosion in related papers. Our paper sheds more light into work in this area over more than 3 decades by developing a taxonomy of DVRP papers according to 11 criteria. These are (1) type of problem, (2) logistical context, (3) transportation mode, (4) objective function, (5) fleet size, (6) time constraints, (7) vehicle capacity constraints, (8) the ability to reject customers, (9) the nature of the dynamic element, (10) the nature of the stochasticity (if any), and (11) the solution method. We comment on technological vis-à-vis methodological advances for this class of problems and suggest directions for further research. The latter include alternative objective functions, vehicle speed as decision variable, more explicit linkages of methodology to technological advances and analysis of worst case or average case performance of heuristics.© 2015 Wiley Periodicals, Inc

Optimizing transport logistics under uncertainty with simheuristics: concepts, review and trends

Background: Uncertainty conditions have been increasingly considered in optimization problems arising in real-life transportation and logistics activities. Generally, the analysis of complex systems in these non-deterministic environments is approached with simulation techniques. However, simulation is not an optimization tool. Hence, it must be combined with optimization methods when our goal is to: (i) minimize operating costs while guaranteeing a given quality of service; or (ii) maximize system performance using limited resources. When solving NP-hard optimization problems, the use of metaheuristics allows us to deal with large-scale instances in reasonable computation times. By adding a simulation layer to the metaheuristics, the methodology becomes a simheuristic, which allows the optimization element to solve scenarios under uncertainty. Methods: This paper reviews the indexed documents in Elsevier Scopus database of both initial as well as recent applications of simheuristics in the logistics and transportation field. The paper also discusses open research lines in this knowledge area. Results: The simheuristics approaches to solving NP-hard and large-scale combinatorial optimization problems under uncertainty scenarios are discussed, as they frequently appear in real-life applications in logistics and transportation activities. Conclusions: The way in which the different simheuristic components interact puts a special emphasis in the different stages that can contribute to make the approach more efficient from a computational perspective. There are several lines of research that are still open in the field of simheuristics.Peer ReviewedPostprint (published version

Downstream logistics optimization at EWOS Norway

The Norwegian company EWOS AS produces fish feed for the salmon farming industry, supplying approximately 300 customers spread along the coast of Norway. The feed is produced at three factory locations and distributed by a fleet of 10 dedicated vessels. The high seasonality of the demand and the large number of customers make the distribution planning a substantial challenge. EWOS handles it by operating a system of mostly fixed routes with decentralized planning at each factory. The distribution can be described as a multi-depot vehicle routing problem with time windows, multiple vehicle usage, inter-depot routes, heterogeneous fleet and a rolling horizon. The paper presents a mathematical model for this problem, which is solved by heuristics and meta heuristics. Based on detailed historical data collected by EWOS during the autumn of 2010, the model has proposed a dynamic set of routes with a significant reduction of travelled distance - close to 30% - and an increase of average vessel fill-rate - from 60% up to 95%. This implies a substantial fuel saving, with a positive environmental impact, and also a potential for downscaling the fleet, with additional considerable cost savings for the company.publishedVersio

Tabu search heuristic for inventory routing problem with stochastic demand and time windows

This study proposes the hybridization of tabu search (TS) and variable neighbourhood descent (VND) for solving the Inventory Routing Problems with Stochastic Demand and Time Windows (IRPSDTW). Vendor Managed Inventory (VMI) is among the most used approaches for managing supply chains comprising multiple stakeholders, and implementing VMI require addressing the Inventory Routing Problem (IRP). Considering practical constraints related to demand uncertainty and time constraint, the proposed model combines multi-item replenishment schedules with unknown demand to arrange delivery paths, where the actual demand amount is only known upon arrival at a customer location with a time limit. The proposed method starts from the initial solution that considers the time windows and uses the TS method to solve the problem. As an extension, the VND is conducted to jump the solution from its local optimal. The results show that the proposed method can solve the IRPSDTW, especially for uniformly distributed customer locations

Tabu search for ship routing and scheduling

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University, 20/12/2006.This thesis examines exact and heuristic approaches to solve the Ship Routing and Scheduling Problem (SRSP). The method was developed to address the problem of loading cargos for many customers using heterogeneous vessels. Constraints relate to delivery time windows imposed by customers, the time horizon by which all deliveries must be made and vessel capacities. The objective is to minimise the overall operation cost, where all customers are satisfied. Two types of routing and scheduling are considered, one called single-cargo problem, where only one cargo can be loaded into a ship, and the second type called multi-cargo problem, where multiple products can be carried on a ship to be delivered to different customers. The exact approach comprises two stages. In the first stage, a number of candidate feasible schedules is generated for each ship in the fleet. The second stage is to model the problem as a set partitioning problem (SPP) where the columns are the candidate feasible schedules obtained in the first stage. The heuristic approach uses Tabu Search (TS). Most of the TS operations, such as insert and swap moves, tenure, tabu list, intensification, and diversification are used. The results of a computational investigation are presented. Solution quality and execution time are explored with respect to problem size and parameters controlling the tabu search such as tenure and neighbourhood size. The results showed that the average of the solution gap between TS solution and SPP solution is up to 28% (for small problems) and up to 18% for large problems. However, obtaining an optimal solution requires a large amount of computer time to produce the solution compared to obtaining approximate solutions using the TS approach. The use of Tabu Search for SRSP is novel and the results indicate that it is viable approach for large problems