In this work we compare several new computational approaches to an inventory routing problem, in which a single product is shipped from a warehouse to retailers via an uncapacitated vehicle. We survey exact algorithms for the Traveling Salesman Problem (TSP) and its relaxations in the literature for the routing component. For the inventory control component we survey classical mixed integer linear programming and shortest path formulations for inventory models. We present a numerical study comparing combinations of the two empirically in terms of cost and solution time.
Recent developments in urbanization and e-commerce have pushed businesses to deploy efficient systems to decrease their supply chain cost. Vendor Managed Inventory (VMI) is one of the most widely used strategies to effectively manage supply chains with multiple parties. VMI implementation asks for solving the Inventory Routing Problem (IRP). This study considers a multi-product multi-period inventory routing problem, including a supplier, set of customers, and a fleet of heterogeneous vehicles. Due to the complex nature of the IRP, we developed a Modified Adaptive Genetic Algorithm (MAGA) to s…
The two-echelon inventory-routing problem (2E-IRP) addresses the coordination of inventory management and freight transportation throughout a two-echelon supply network. The latter consists of geographically widespread customers whose demand over a discrete planning horizon can be met from either their local inventory or intermediate facilities' inventory. Intermediate facilities are located in the city outskirt and are supplied from distant suppliers. The 2E-IRP aims to minimize transportation costs and inventory costs while meeting customers' demand. A route-based formulation is proposed and…
Given the rapid advances in unmanned aerial vehicles, or drones, and increasing need to monitor traffic at a city level, one of the current research gaps is how to systematically deploy drones over multiple periods. We propose a real-time data-driven approach: we formulate the first deterministic arc-inventory routing problem and derive its stochastic dynamic policy. The policy is expected to be of greatest value in scenarios where uncertainty is highest and costliest, such as city traffic monitoring during major events. The Bellman equation for an approximation of the proposed inventory routi…
Tecnologico de Monterrey（蒙特雷科技大学）；Universidade Federal da Bahia（巴伊亚联邦大学）
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…
We consider the dynamic inventory problem with non-stationary demands. It has long been known that non-stationary (s, S) policies are optimal for this problem. However, finding optimal policy parameters remains a computational challenge as it requires solving a large-scale stochastic dynamic program. To address this, we devise a recursion-free approximation for the optimal cost function of the problem. This enables us to compute policy parameters heuristically, without resorting to a stochastic dynamic program. The heuristic is easy-to-understand and -use since it follows by elementary methods…
Inventory management problems with periodic and controllable resets occur in the context of managing water storage in the developing world and retailing limited-time availability products. In this paper, we consider a set of sequential decision problems in which the decision-maker must not only balance holding and shortage costs but discard all inventory before a fixed number of decision epochs, with the option for an early inventory reset. Finding optimal policies using dynamic programming for these problems is particularly challenging since the resulting value functions are non-convex. Moreo…
This paper investigates a stochastic inventory management problem in which a cash-constrained small retailer periodically purchases a product from suppliers and sells it to a market while facing non-stationary demands. In each period, the retailer's available cash restricts the maximum quantity that can be ordered. There exists a fixed ordering cost for the retailer when purchasing. We partially characterize the optimal ordering policy by showing it has an $\bf s-C$ structure: for each period, when initial inventory is above the $\bf$s threshold, no product should be ordered no matter how much…
We consider a periodic-review, fixed-lifetime perishable inventory control problem where demand is a general stochastic process. The optimal solution for this problem is intractable due to "curse of dimensionality". In this paper, we first present a computationally efficient algorithm that we call the marginal-cost dual-balancing policy for perishable inventory control problem. We then prove that a myopic policy under the so-called marginal-cost accounting scheme provides a lower bound on the optimal ordering quantity. By combining the specific lower bound we derive and any upper bound on the …
The multi Vehicle Routing Problem with Pickup and Delivery with Time Windows is a challenging version of the Vehicle Routing Problem. In this paper, by embedding many complex assignment routing constraints through constructing a multi dimensional network, we intend to reach optimality for local clusters derived from a reasonably large set of passengers on real world transportation networks. More specifically, we introduce a multi vehicle state space time network representation in which only the non dominated assignment based hyper paths are examined. In addition, by the aid of passengers cumul…
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 a two-echelon vehicle routing framework for performing these operations using aerial uncrewed autonomous vehicles (UAVs or drones) to address the issues associated with these failures. In our proposed framework, we assume that ground vehicles cannot…
This paper develops a computationally efficient algorithm for the Multiple Vehicle Pickup and Delivery Problem (MVPDP) with the objective of minimizing the tour cost incurred while completing the task of pickup and delivery of customers. To this end, this paper constructs a novel 0-1 Integer Quadratic Programming (IQP) problem to exactly solve the MVPDP. Compared to the state-of-the-art Mixed Integer Linear Programming (MILP) formulation of the problem, the one presented here requires fewer constraints and decision variables. To ensure that this IQP formulation of the MVPDP can be solved in a …
Order picking is the process of retrieving ordered products from storage locations in warehouses. In picker-to-parts order picking systems, two or more customer orders may be grouped and assigned to a single picker. Then routing decision regarding the visiting sequence of items during a picking tour must be made. (J.Won and S.Olafsson 2005) found that solving the integrated problem of batching and routing enables warehouse managers to organize order picking operations more efficiently compared with solving the two problems separately and sequentially. We therefore investigate the mathematical …
This work considers the problem of optimize the routes of the vehicles used by a real agricultural cooperative that distributes animal feed among the partners. Because solving the exact model is computationally burdensome, we propose to implement heuristic algorithms. Thus, firstly an initial solution is obtained through an insertion heuristic algorithm. Secondly, we design a simulated annealing algorithm for possible improvements on the initial solution. Finally, we built a graphical interface to quickly and easily interact with the system.
After the April 2015 Nepal Earthquake, the Himalayan Disaster Relief Volunteer Group distributed supplies to affected areas. We model HDRVG's operations as a vehicle routing problem using Fisher and Jaikumar's two stage method, which allocates locations to vehicles via an integer program and then uses heuristics to route the vehicles. In the allocation stage, we use the assignment problem formulation to assign locations to vehicles. In the routing stage, we implement multiple heuristics for the sake of comparison. Our results illustrate the open nature of the vehicle routing problem and the co…
This thesis introduces stochastic generalized routing problem model and proposes exact and heuristic algorithms to solve it efficiently, in a wide range of problem sizes. At first, the classic routing problem with its common variations in deterministic form is reviewed. Its mathematical models are demonstrated and exact and heuristic algorithms are described. Next, stochastic generalized routing problem is formalized and discussed. Since this problem is introducing for the first time in this thesis, it is necessary to review the required theoretical principles of the problem in terms of stocha…
The Drone Routing Problem with Energy replenishment (DRP-E) belongs to a general class of routing problems with intermediate stops and synchronization constraints. In DRP-E, the drone has to visit a set of nodes and routinely requires battery swaps from a (potentially) mobile replenishment station. Contrary to widespread restrictions in the drone routing literature, several destinations may be visited in between two consecutive battery swaps. In this paper, we propose a nontrivial very large-scale neighbourhood for DRP-E, which synergetically leverages two large-sized polynomially solvable DRP…
We study the strategic decision-making problem of assigning time windows to customers in the context of vehicle routing applications that are affected by operational uncertainty. This problem, known as the Time Window Assignment Vehicle Routing Problem, can be viewed as a two-stage stochastic optimization problem, where time window assignments constitute first-stage decisions, vehicle routes adhering to the assigned time windows constitute second-stage decisions, and the objective is to minimize the expected routing costs. We prove that a sampled deterministic equivalent of this stochastic mod…
Huazhong University of Science and Technology（华中科技大学）；Huawei Noah’s Ark Lab（华为诺亚方舟实验室）
Vehicle routing is a well-known optimization research topic with significant practical importance. Among different approaches to solving vehicle routing, heuristics can produce a satisfactory solution at a reasonable computational cost. Consequently, much effort has been made in the past decades to develop vehicle routing heuristics. In this article, we systematically survey the existing vehicle routing heuristics, particularly on works carried out in recent years. A classification of vehicle routing heuristics is presented, followed by a review of their methodologies, recent developments, and…
We consider the problem of optimally executing an order involving multiple crypto-assets, sometimes called tokens, on a network of multiple constant function market makers (CFMMs). When we ignore the fixed cost associated with executing an order on a CFMM, this optimal routing problem can be cast as a convex optimization problem, which is computationally tractable. When we include the fixed costs, the optimal routing problem is a mixed-integer convex problem, which can be solved using (sometimes slow) global optimization methods, or approximately solved using various heuristics based on convex…
We consider a cooperative vehicle routing problem for surveillance and reconnaissance missions with communication constraints between the vehicles. We propose a framework which involves a ground vehicle and an aerial vehicle; the vehicles travel cooperatively satisfying the communication limits, and visit a set of targets. We present a mixed integer linear programming (MILP) formulation and develop a branch-and-cut algorithm to solve the path planning problem for the ground and air vehicles. The effectiveness of the proposed approach is corroborated through extensive computational experiments …
There is a growing interest in using electric vehicles (EVs) and drones for many applications. However, battery-oriented issues, including range anxiety and battery degradation, impede adoption. Battery swap stations are one alternative to reduce these concerns that allow the swap of depleted for full batteries in minutes. We consider the problem of deriving actions at a battery swap station when explicitly considering the uncertain arrival of swap demand, battery degradation, and replacement. We model the operations at a battery swap station using a finite horizon Markov Decision Process mode…
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…
In this paper we propose a general methodology for the optimal automatic routing of spatial pipelines motivated by a recent collaboration with Ghenova, a leading Naval Engineering company. We provide a minimum cost multicommodity network flow based model for the problem incorporating all the technical requirements for a feasible pipeline routing. A branch-and-cut approach is designed and different matheuristic algorithms are derived for solving efficiently the problem. We report the results of a battery of computational experiments to assess the problem performance as well as a case study of a…
We consider the problem of vehicle routing for Autonomous Mobility-on-Demand (AMoD) systems, wherein a fleet of self-driving vehicles provides on-demand mobility in a given environment. Specifically, the task it to compute routes for the vehicles (both customer-carrying and empty travelling) so that travel demand is fulfilled and operational cost is minimized. The routing process must account for congestion effects affecting travel times, as modeled via a volume-delay function (VDF). Route planning with VDF constraints is notoriously challenging, as such constraints compound the combinatorial …
Companies are eager to have a smart supply chain especially when they have a dynamic system. Industry 4.0 is a concept which concentrates on mobility and real-time integration. Thus, it can be considered as a necessary component that has to be implemented for a Dynamic Vehicle Routing Problem. The aim of this research is to solve large-scale DVRP (LSDVRP) in which the delivery vehicles must serve customer demands from a common depot to minimize transit cost while not exceeding the capacity constraint of each vehicle. In LSDVRP, it is difficult to get an exact solution and the computational tim…
In this work we investigate the problem of order batching and picker routing in storage areas. These are labour and capital intensive problems, often responsible for a substantial share of warehouse operating costs. In particular, we consider the case of online grocery shopping in which orders may be composed of dozens of items. We present a formulation for the problem based on an exponential number of connectivity constraints and we introduce a significant number of valid inequalities based on the standard layout of warehouses, composed of parallel aisles and two or more cross-aisles. The pro…
SNCF, the French public train company, is experimenting to develop new types of transportation services by tackling vehicle routing problems. While many deep learning models have been used to tackle efficiently vehicle routing problems, it is difficult to take into account time related constraints. In this paper, we solve the Capacitated Vehicle Routing Problem with Time Windows (CVRPTW) and the Capacitated Pickup and Delivery Problem with Time Windows (CPDPTW) with a constructive iterative Deep Learning algorithm. We use an Attention Encoder-Decoder structure and design a novel insertion heur…
