IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v272y2019i3p914-927.html
   My bibliography  Save this article

An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing

Author

Listed:
  • Li, Yantong
  • Chu, Feng
  • Chu, Chengbin
  • Zhu, Zhanguo

Abstract

A classic production routing problem (PRP), in which a plant produces and distributes a single product to a set of customers over a finite time horizon, consists of planning simultaneously the production, inventory and routing activities to minimize the total cost. The last few decades have witnessed the increasing efforts made to solve such a complex problem. In this paper, we investigate a generalized PRP by considering multiple products and outsourcing (MPRP-OS). The newly studied problem is first formulated into a mixed integer linear program. Then a three-level mathematical-programming-based heuristic called TLH is developed to solve it. TLH combines a two-phase iterative method, a repairing strategy and a fix-and-optimize procedure to find near-optimal solutions. In addition, it is adaptable to solve the classic PRP. Computational experiments on 225 newly generated MPRP-OS instances with up to 200 customers, 20 vehicles, 6 periods and 12 products show the effectiveness and efficiency of the proposed heuristic. The performance of TLH is further demonstrated by testing 1530 classic PRP benchmark instances with up to 200 customers, 13 vehicles and 20 periods. Experimental results indicate that TLH is able to solve large-sized MPRP-OS instances within short computation times. In addition, TLH provides new best solutions for 283 out of 1530 benchmark instances.

Suggested Citation

  • Li, Yantong & Chu, Feng & Chu, Chengbin & Zhu, Zhanguo, 2019. "An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 914-927.
    • Handle: RePEc:eee:ejores:v:272:y:2019:i:3:p:914-927
    DOI: 10.1016/j.ejor.2018.07.018
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221718306234
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2018.07.018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michel Gendreau & Alain Hertz & Gilbert Laporte, 1994. "A Tabu Search Heuristic for the Vehicle Routing Problem," Management Science, INFORMS, vol. 40(10), pages 1276-1290, October.
    2. Gerald Brown & Joseph Keegan & Brian Vigus & Kevin Wood, 2001. "The Kellogg Company Optimizes Production, Inventory, and Distribution," Interfaces, INFORMS, vol. 31(6), pages 1-15, December.
    3. Lee, Shine-Der & Lan, Shu-Chuan, 2013. "Production lot sizing with a secondary outsourcing facility," International Journal of Production Economics, Elsevier, vol. 141(1), pages 414-424.
    4. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2017. "A branch-and-price algorithm for production routing problems with carbon cap-and-trade," Omega, Elsevier, vol. 68(C), pages 49-61.
    5. Boudia, M. & Prins, C., 2009. "A memetic algorithm with dynamic population management for an integrated production-distribution problem," European Journal of Operational Research, Elsevier, vol. 195(3), pages 703-715, June.
    6. S. Lin & B. W. Kernighan, 1973. "An Effective Heuristic Algorithm for the Traveling-Salesman Problem," Operations Research, INFORMS, vol. 21(2), pages 498-516, April.
    7. F. Fumero & C. Vercellis, 1999. "Synchronized Development of Production, Inventory, and Distribution Schedules," Transportation Science, INFORMS, vol. 33(3), pages 330-340, August.
    8. Russell, Robert A., 2017. "Mathematical programming heuristics for the production routing problem," International Journal of Production Economics, Elsevier, vol. 193(C), pages 40-49.
    9. Sahling, Florian & Buschkühl, Lisbeth & Tempelmeier, Horst & Helber, Stefan, 2008. "Solving a Multi-Level Capacitated Lot Sizing Problem with Multi-Period Setup Carry-Over via a Fix-and-Optimize Heuristic," Hannover Economic Papers (HEP) dp-400, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    10. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2014. "Optimization-Based Adaptive Large Neighborhood Search for the Production Routing Problem," Transportation Science, INFORMS, vol. 48(1), pages 20-45, February.
    11. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2015. "Benders Decomposition for Production Routing Under Demand Uncertainty," Operations Research, INFORMS, vol. 63(4), pages 851-867, August.
    12. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2014. "Formulations and Branch-and-Cut Algorithms for Multivehicle Production and Inventory Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 103-120, February.
    13. Chandra, Pankaj & Fisher, Marshall L., 1994. "Coordination of production and distribution planning," European Journal of Operational Research, Elsevier, vol. 72(3), pages 503-517, February.
    14. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    15. Nadjib Brahimi & Tarik Aouam, 2016. "Multi-item production routing problem with backordering: a MILP approach," International Journal of Production Research, Taylor & Francis Journals, vol. 54(4), pages 1076-1093, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peng, Xiaoshuai & Zhang, Lele & Thompson, Russell G. & Wang, Kangzhou, 2023. "A three-phase heuristic for last-mile delivery with spatial-temporal consolidation and delivery options," International Journal of Production Economics, Elsevier, vol. 266(C).
    2. Lei, Jieyu & Che, Ada & Van Woensel, Tom, 2024. "Collection-disassembly-delivery problem of disassembly centers in a reverse logistics network," European Journal of Operational Research, Elsevier, vol. 313(2), pages 478-493.
    3. Li, Yantong & Chu, Feng & Côté, Jean-François & Coelho, Leandro C. & Chu, Chengbin, 2020. "The multi-plant perishable food production routing with packaging consideration," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Schenekemberg, Cleder M. & Scarpin, Cassius T. & Pécora, José E. & Guimarães, Thiago A. & Coelho, Leandro C., 2021. "The two-echelon production-routing problem," European Journal of Operational Research, Elsevier, vol. 288(2), pages 436-449.
    5. Debabrata Das & Sameer Kumar & Nirmal Baran Hui & Vipul Jain & Charu Chandra, 2023. "Pricing and revenue-based outsourcing strategies in a multi-echelon lot-sizing model under insufficient production capacity," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 22(6), pages 514-530, December.
    6. Zakaria Chekoubi & Wajdi Trabelsi & Nathalie Sauer & Ilias Majdouline, 2022. "The Integrated Production-Inventory-Routing Problem with Reverse Logistics and Remanufacturing: A Two-Phase Decomposition Heuristic," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    7. Manousakis, Eleftherios G. & Kasapidis, Grigoris A. & Kiranoudis, Chris T. & Zachariadis, Emmanouil E., 2022. "An infeasible space exploring matheuristic for the Production Routing Problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 478-495.
    8. Alvarez, Aldair & Miranda, Pedro & Rohmer, S.U.K., 2022. "Production routing for perishable products," Omega, Elsevier, vol. 111(C).
    9. Nikzad, Erfaneh & Bashiri, Mahdi & Abbasi, Babak, 2021. "A matheuristic algorithm for stochastic home health care planning," European Journal of Operational Research, Elsevier, vol. 288(3), pages 753-774.
    10. Abdalrahman Algendi & Sebastián Urrutia & Lars Magnus Hvattum, 2023. "Optimizing production levels in maritime inventory routing with load-dependent speed optimization," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 111-141, March.
    11. Avci, Mustafa & Yildiz, Seyda Topaloglu, 2019. "A matheuristic solution approach for the production routing problem with visit spacing policy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 572-588.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zakaria Chekoubi & Wajdi Trabelsi & Nathalie Sauer & Ilias Majdouline, 2022. "The Integrated Production-Inventory-Routing Problem with Reverse Logistics and Remanufacturing: A Two-Phase Decomposition Heuristic," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    2. Qiu, Yuzhuo & Zhou, Dan & Du, Yanan & Liu, Jie & Pardalos, Panos M. & Qiao, Jun, 2021. "The two-echelon production routing problem with cross-docking satellites," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    3. Li, Yantong & Chu, Feng & Côté, Jean-François & Coelho, Leandro C. & Chu, Chengbin, 2020. "The multi-plant perishable food production routing with packaging consideration," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Qiu, Yuzhuo & Ni, Ming & Wang, Liang & Li, Qinqin & Fang, Xuanjing & Pardalos, Panos M., 2018. "Production routing problems with reverse logistics and remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 87-100.
    5. Xuanjing Fang & Yanan Du & Yuzhuo Qiu, 2017. "Reducing Carbon Emissions in a Closed-Loop Production Routing Problem with Simultaneous Pickups and Deliveries under Carbon Cap-and-Trade," Sustainability, MDPI, vol. 9(12), pages 1-15, November.
    6. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Cordeau, Jean-François & Guimarães, Luís & Jans, Raf, 2019. "Solving a large multi-product production-routing problem with delivery time windows," Omega, Elsevier, vol. 86(C), pages 154-172.
    7. Habibi, Muhammad Khakim & Hammami, Ramzi & Battaia, Olga & Dolgui, Alexandre, 2024. "Simultaneous Pickup-and-Delivery Production-Routing Problem in closed-loop supply chain with remanufacturing and disassembly consideration," International Journal of Production Economics, Elsevier, vol. 273(C).
    8. Manousakis, Eleftherios G. & Kasapidis, Grigoris A. & Kiranoudis, Chris T. & Zachariadis, Emmanouil E., 2022. "An infeasible space exploring matheuristic for the Production Routing Problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 478-495.
    9. Avci, Mustafa & Yildiz, Seyda Topaloglu, 2019. "A matheuristic solution approach for the production routing problem with visit spacing policy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 572-588.
    10. Hrabec, Dušan & Hvattum, Lars Magnus & Hoff, Arild, 2022. "The value of integrated planning for production, inventory, and routing decisions: A systematic review and meta-analysis," International Journal of Production Economics, Elsevier, vol. 248(C).
    11. Alvarez, Aldair & Miranda, Pedro & Rohmer, S.U.K., 2022. "Production routing for perishable products," Omega, Elsevier, vol. 111(C).
    12. Pedro L. Miranda & Reinaldo Morabito & Deisemara Ferreira, 2018. "Optimization model for a production, inventory, distribution and routing problem in small furniture companies," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 26(1), pages 30-67, April.
    13. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2019. "Optimal production, replenishment, delivery, routing and inventory management policies for products with perishable inventory," Omega, Elsevier, vol. 82(C), pages 193-204.
    14. Russell, Robert A., 2017. "Mathematical programming heuristics for the production routing problem," International Journal of Production Economics, Elsevier, vol. 193(C), pages 40-49.
    15. Qiu, Yuzhuo & Qiao, Jun & Pardalos, Panos M., 2017. "A branch-and-price algorithm for production routing problems with carbon cap-and-trade," Omega, Elsevier, vol. 68(C), pages 49-61.
    16. N. Absi & C. Archetti & S. Dauzère-Pérès & D. Feillet, 2015. "A Two-Phase Iterative Heuristic Approach for the Production Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 784-795, November.
    17. Schenekemberg, Cleder M. & Scarpin, Cassius T. & Pécora, José E. & Guimarães, Thiago A. & Coelho, Leandro C., 2021. "The two-echelon production-routing problem," European Journal of Operational Research, Elsevier, vol. 288(2), pages 436-449.
    18. Masoud Chitsaz & Jean-François Cordeau & Raf Jans, 2019. "A Unified Decomposition Matheuristic for Assembly, Production, and Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 134-152, February.
    19. STRACK, Géraldine & FORTZ, Bernard & RIANE, Fouad & VAN VYVE, Mathieu, 2011. "Comparison of heuristic procedures for an integrated model for production and distribution planning in an environment of shared resources," LIDAM Discussion Papers CORE 2011016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    20. Lei, Jieyu & Che, Ada & Van Woensel, Tom, 2024. "Collection-disassembly-delivery problem of disassembly centers in a reverse logistics network," European Journal of Operational Research, Elsevier, vol. 313(2), pages 478-493.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:272:y:2019:i:3:p:914-927. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.