We consider an NP-hard selective and periodic inventory routing problem (SPIRP) in a waste vegetable oil collection environment. This SPIRP arises in the context of reverse logistics where a biodiesel company has daily requirements of oil to be used as raw material in its production process. These requirements can be fulfilled by using the available inventory, collecting waste vegetable oil or purchasing virgin oil. The problem consists in determining a period (cyclic) planning for the collection and purchasing of oil such that the total collection, inventory and purchasing costs are minimized, while meeting the company's oil requirements and all the operational constraints. We propose a MIP-based heuristic which solves a relaxed model without routing, constructs routes taking into account the relaxation's solution and then improves these routes by solving the capacitated vehicle routing problem associated to each period. Following this approach, an a posteriori performance guarantee is ensured, as the approach provides both a lower bound and a feasible solution. The performed computational experiments show that the MIP-based heuristic is very fast and effective as it is able to encounter near optimal solutions with low gaps within seconds, improving several of the best known results using just a fraction of the time spent by a state-of-the-art heuristic. A remarkable fact is that the proposed MIP-based heuristic improves over the best known results for all the large instances available in the literature.
In this paper, we describe a novel solution to compute optimal warehouse allocations for fashion inventory. Procured inventory must be optimally allocated to warehouses in proportion to the regional demand around the warehouse. This will ensure that demand is fulfilled by the nearest warehouse thereby minimizing the delivery logistics cost and delivery times. These are key metrics to drive profitability and customer experience respectively. Warehouses have capacity constraints and allocations must minimize inter warehouse redistribution cost of the inventory. This leads to maximum Regional Uti…
We propose new mathematical models of inventory management in a reverse logistics system. The proposed models extend the model introduced by Nahmias and Rivera with the assumption that the demand for newly produced and repaired (remanufacturing) items are not the same. We derive two mathematical models and formulate unconstrained and constrained optimization problems to optimize the holding cost. We also introduce the solution procedures of the proposed problems. The exactness of the proposed solutions has been tested by numerical experiments. Nowadays, it is an essential commitment for indust…
Green Inventory Management: Leveraging Multiobjective Reverse Logistics
Queensland University of Technology (QUT)(昆士兰科技大学);Institute of Innovation, Science and Sustainability, Federation University Australia(联邦澳大利亚大学创新、科学与可持续发展研究所)
TU Braunschweig(布伦瑞克工业大学);University of Iowa(爱荷华大学)
There has been a paradigm-shift in urban logistic services in the last years; demand for real-time, instant mobility and delivery services grows. This poses new challenges to logistic service providers as the underlying stochastic dynamic vehicle routing problems (SDVRPs) require anticipatory real-time routing actions. Searching the combinatorial action space for efficient routing actions is by itself a complex task of mixed-integer programming (MIP) well-known by the operations research community. This complexity is now multiplied by the challenge of evaluating such actions with respect to th…
A Branch-and-Price Algorithm for Fast and Equitable Last-Mile Relief Aid Distribution
Department of Mathematics and Industrial Engineering, Polytechnique Montréal(蒙特利尔理工学院数学与工业工程系);College of Engineering, Koç University(科克大学工程学院);Department of Statistics and Operations Research, University of Vienna(维也纳大学统计与运筹学系)
We consider the multi-item inventory lot-sizing problem with supplier selection. The problem consists of determining an optimal purchasing plan in order to satisfy dynamic deterministic demands for multiple items over a finite planning horizon, considering that multiple suppliers are available to purchase from. As the complexity of the problem was an open question, we show that it is NP-hard. We propose a facility location extended formulation for the problem which can be preprocessed based on the cost structure and describe new valid inequalities in the original space of variables. Furthermor…
Once known to be used exclusively in military domain, unmanned aerial vehicles (drones) have stepped up to become a part of new logistic method in commercial sector called "last-mile delivery". In this novel approach, small unmanned aerial vehicles (UAV), also known as drones, are deployed alongside with trucks to deliver goods to customers in order to improve the service quality or reduce the transportation cost. It gives rise to a new variant of the traveling salesman problem (TSP), of which we call TSP with drone (TSP-D). In this article, we consider a variant of TSP-D where the main object…
This paper introduces the two-level capacitated vehicle routing problem (2S-CVRP). This problem combines the two-level bin packing problem and the vehicle routing problem into an integrated framework. The problem itself is an NP-hard problem and it can be seen as an extension to the traditional capacitated vehicle routing problem (CVRP). We propose this extension as it enable one to model more real-life applications in logistics. A mixed integer program (MIP) model is presented for the problem. Our MIP model includes an extensive set of constraints encountered in real-world applications. The v…
Logistics has gained great attentions with the prosperous development of commerce, which is often seen as the classic optimal vehicle routing problem. Meanwhile, electric vehicle (EV) has been widely used in logistic fleet to curb the emission of green house gases in recent years. Solving the optimization problem of joint routing and charging of multiple EVs is in a urgent need, whose objective function includes charging time, charging cost, EVs travel time, usage fees of EV and revenue from serving customers. This joint problem is formulated as a mixed integer programming (MIP) problem, which…
We consider the uncapacitated three-level lot-sizing and replenishment problem with a distribution structure. In this NP-hard problem, a single production plant sends the produced items to replenish warehouses from where they are dispatched to the retailers in order to satisfy their demands over a finite planning horizon. The goal of the problem is to determine an integrated production and distribution plan minimizing the total costs, which comprehends fixed production and transportation setup as well as variable inventory holding costs. We describe new valid inequalities both in the space of …
We consider the capacitated three-level lot-sizing and replenishment problem with a distribution structure (3LSPD-C), recently proposed in the literature. In 3LSPD-C, a single production plant delivers items to the warehouses from where they are distributed to their corresponding retailers. There is a capacity on the total amount the plant can produce in each period, whereas there are no capacities on transportation. The goal of the problem consists in determining an integrated three-echelon production and distribution plan minimizing the total cost, which is composed of fixed costs for produc…
In this paper, we address a variant of a batch scheduling problem with identical parallel machines and non-anticipatory family setup times to minimize the total weighted completion time. We developed an ILS and a GRASP matheuristics to solve the problem using a constructive heuristic and two MIP-based neighborhood searches, considering two batch scheduling mathematical formulations. The problem derives from a ship scheduling problem related to offshore oil & gas logistics, the Pipe Laying Support Vessel Scheduling Problem (PLSVSP). The developed methods overcome the current solution approaches…