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An adaptive large neighborhood search algorithm for a selective and periodic inventory routing problem

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  • Aksen, Deniz
  • Kaya, Onur
  • Sibel Salman, F.
  • Tüncel, Özge

Abstract

We study a selective and periodic inventory routing problem (SPIRP) and develop an Adaptive Large Neighborhood Search (ALNS) algorithm for its solution. The problem concerns a biodiesel production facility collecting used vegetable oil from sources, such as restaurants, catering companies and hotels that produce waste vegetable oil in considerable amounts. The facility reuses the collected waste oil as raw material to produce biodiesel. It has to meet certain raw material requirements either from daily collection, or from its inventory, or by purchasing virgin oil. SPIRP involves decisions about which of the present source nodes to include in the collection program, and which periodic (weekly) routing schedule to repeat over an infinite planning horizon. The objective is to minimize the total collection, inventory and purchasing costs while meeting the raw material requirements and operational constraints. A single-commodity flow-based mixed integer linear programming (MILP) model was proposed for this problem in an earlier study. The model was solved with 25 source nodes on a 7-day cyclic planning horizon. In order to tackle larger instances, we develop an ALNS algorithm that is based on a rich neighborhood structure with 11 distinct moves tailored to this problem. We demonstrate the performance of the ALNS, and compare it with the MILP model on test instances containing up to 100 source nodes.

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  • Aksen, Deniz & Kaya, Onur & Sibel Salman, F. & Tüncel, Özge, 2014. "An adaptive large neighborhood search algorithm for a selective and periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 239(2), pages 413-426.
    • Handle: RePEc:eee:ejores:v:239:y:2014:i:2:p:413-426
    DOI: 10.1016/j.ejor.2014.05.043
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    11. A. Mor & M. G. Speranza, 2022. "Vehicle routing problems over time: a survey," Annals of Operations Research, Springer, vol. 314(1), pages 255-275, July.
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    13. Cárdenas-Barrón, Leopoldo E. & Melo, Rafael A., 2021. "A fast and effective MIP-based heuristic for a selective and periodic inventory routing problem in reverse logistics," Omega, Elsevier, vol. 103(C).
    14. Liu, Wenqian & Ke, Ginger Y. & Chen, Jian & Zhang, Lianmin, 2020. "Scheduling the distribution of blood products: A vendor-managed inventory routing approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    15. Cárdenas-Barrón, Leopoldo Eduardo & González-Velarde, José Luis & Treviño-Garza, Gerardo & Garza-Nuñez, Dagoberto, 2019. "Heuristic algorithm based on reduce and optimize approach for a selective and periodic inventory routing problem in a waste vegetable oil collection environment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 44-59.
    16. Franceschetti, Anna & Demir, Emrah & Honhon, Dorothée & Van Woensel, Tom & Laporte, Gilbert & Stobbe, Mark, 2017. "A metaheuristic for the time-dependent pollution-routing problem," European Journal of Operational Research, Elsevier, vol. 259(3), pages 972-991.
    17. Onur Kaya & Dogus Ozkok, 2020. "A Blood Bank Network Design Problem with Integrated Facility Location, Inventory and Routing Decisions," Networks and Spatial Economics, Springer, vol. 20(3), pages 757-783, September.
    18. Zhang, Yimeng & Li, Xinlei & van Hassel, Edwin & Negenborn, Rudy R. & Atasoy, Bilge, 2022. "Synchromodal transport planning considering heterogeneous and vague preferences of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    19. Olmez, Omer Berk & Gultekin, Ceren & Balcik, Burcu & Ekici, Ali & Özener, Okan Örsan, 2022. "A variable neighborhood search based matheuristic for a waste cooking oil collection network design problem," European Journal of Operational Research, Elsevier, vol. 302(1), pages 187-202.
    20. Dayarian, Iman & Crainic, Teodor Gabriel & Gendreau, Michel & Rei, Walter, 2016. "An adaptive large-neighborhood search heuristic for a multi-period vehicle routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 95-123.
    21. Amit Verma & Ann Melissa Campbell, 2019. "Strategic placement of telemetry units considering customer usage correlation," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(1), pages 35-64, March.

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