IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v92y2020ics0305048319300350.html
   My bibliography  Save this article

Integrated planning of inbound and outbound logistics with a Rich Vehicle Routing Problem with backhauls

Author

Listed:
  • Marques, Alexandra
  • Soares, Ricardo
  • Santos, Maria João
  • Amorim, Pedro

Abstract

This paper addresses the integration of the planning decisions concerning inbound logistics in an industrial setting (from the suppliers to the mill) and outbound logistics (from the mill to customers). The goal is to find the minimum cost routing plan, which includes the cost-effective outbound and inbound daily routes (OIRs), consisting of a sequence of deliveries of customer orders, pickup of a full truck-load at a supplier, and its delivery to the mill. This study distinguishes between three planning strategies: opportunistic backhauling planning (OBP), integrated inbound and outbound planning (IIOP) and decoupled planning (DIOP), the latter being the commonly used, particularly in the case of the wood-based panel industry under study. From the point of view of process integration, OBP can be considered as an intermediate stage from DIOP to IIOP. The problem is modelled as a Vehicle Routing Problem with Backhauls, enriched with case-specific rules for visiting the backhaul, split deliveries to customers and the use of a heterogeneous fleet. A new fix-and-optimise matheuristic is proposed for this problem, seeking to obtain good quality solutions within a reasonable computational time. The results from its application to the wood-based panel industry in Portugal show that IIOP can help to reduce total costs in about 2.7%, when compared with DIOP, due to better use of the delivery truck and a reduction of the number of dedicated inbound routes. Regarding OBP, fostering the use of OIRs does not necessarily lead to better routing plans than DIOP, as it depends upon a favourable geographical configuration of the set of customers to be visited in a day, specifically, the relative distance between a linehaul that can be visited last in a route, a neighboring backhaul, and a mill. The paper further provides valuable managerial insights on how the routing plan is impacted by the values of business-related model parameters which are set by the planner with some degree of uncertainty. Results suggest that increasing the maximum length of the route will likely have the largest impact in reducing transportation costs. Moreover, increasing the value of a reward paid for visiting a backhaul can foster the percentage of OIR in the optimal routing plan.

Suggested Citation

  • Marques, Alexandra & Soares, Ricardo & Santos, Maria João & Amorim, Pedro, 2020. "Integrated planning of inbound and outbound logistics with a Rich Vehicle Routing Problem with backhauls," Omega, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jomega:v:92:y:2020:i:c:s0305048319300350
    DOI: 10.1016/j.omega.2019.102172
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048319300350
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2019.102172?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. Yu, Mingzhu & Qi, Xiangtong, 2014. "A vehicle routing problem with multiple overlapped batches," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 40-55.
    2. Candace Arai Yano & Thomas J. Chan & Lori Kaplan Richter & Theodore Cutler & Katta G. Murty & David McGettigan, 1987. "Vehicle Routing at Quality Stores," Interfaces, INFORMS, vol. 17(2), pages 52-63, April.
    3. Lai, Michela & Crainic, Teodor Gabriel & Di Francesco, Massimo & Zuddas, Paola, 2013. "An heuristic search for the routing of heterogeneous trucks with single and double container loads," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 108-118.
    4. Goetschalckx, Marc & Jacobs-Blecha, Charlotte, 1989. "The vehicle routing problem with backhauls," European Journal of Operational Research, Elsevier, vol. 42(1), pages 39-51, September.
    5. Amorim, P. & Günther, H.-O. & Almada-Lobo, B., 2012. "Multi-objective integrated production and distribution planning of perishable products," International Journal of Production Economics, Elsevier, vol. 138(1), pages 89-101.
    6. Lahyani, Rahma & Khemakhem, Mahdi & Semet, Frédéric, 2015. "Rich vehicle routing problems: From a taxonomy to a definition," European Journal of Operational Research, Elsevier, vol. 241(1), pages 1-14.
    7. Ropke, Stefan & Pisinger, David, 2006. "A unified heuristic for a large class of Vehicle Routing Problems with Backhauls," European Journal of Operational Research, Elsevier, vol. 171(3), pages 750-775, June.
    8. Salhi, Said & Wassan, Niaz & Hajarat, Mutaz, 2013. "The Fleet Size and Mix Vehicle Routing Problem with Backhauls: Formulation and Set Partitioning-based Heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 56(C), pages 22-35.
    9. Grazia Speranza, M., 2018. "Trends in transportation and logistics," European Journal of Operational Research, Elsevier, vol. 264(3), pages 830-836.
    10. Bouchard, M. & D’Amours, S. & Rönnqvist, M. & Azouzi, R. & Gunn, E., 2017. "Integrated optimization of strategic and tactical planning decisions in forestry," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1132-1143.
    11. Darvish, Maryam & Archetti, Claudia & Coelho, Leandro C. & Speranza, M. Grazia, 2019. "Flexible two-echelon location routing problem," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1124-1136.
    12. Michela Lai & Maria Battarra & Massimo Di Francesco & Paola Zuddas, 2015. "An adaptive guidance meta-heuristic for the vehicle routing problem with splits and clustered backhauls," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(7), pages 1222-1235, July.
    13. G.Y. Tütüncü & B.M. Carreto Baker, 2009. "A visual interactive approach to the classical and mixed vehicle routing problems with backhauls," Post-Print hal-00581628, HAL.
    14. Rieck, Julia & Ehrenberg, Carsten & Zimmermann, Jürgen, 2014. "Many-to-many location-routing with inter-hub transport and multi-commodity pickup-and-delivery," European Journal of Operational Research, Elsevier, vol. 236(3), pages 863-878.
    15. Neves-Moreira, F. & Amorim, P. & Guimarães, L. & Almada-Lobo, B., 2016. "A long-haul freight transportation problem: Synchronizing resources to deliver requests passing through multiple transshipment locations," European Journal of Operational Research, Elsevier, vol. 248(2), pages 487-506.
    16. Gutiérrez-Jarpa, Gabriel & Desaulniers, Guy & Laporte, Gilbert & Marianov, Vladimir, 2010. "A branch-and-price algorithm for the Vehicle Routing Problem with Deliveries, Selective Pickups and Time Windows," European Journal of Operational Research, Elsevier, vol. 206(2), pages 341-349, October.
    17. Dominguez, Oscar & Guimarans, Daniel & Juan, Angel A. & de la Nuez, Ignacio, 2016. "A Biased-Randomised Large Neighbourhood Search for the two-dimensional Vehicle Routing Problem with Backhauls," European Journal of Operational Research, Elsevier, vol. 255(2), pages 442-462.
    18. Wade, A. C. & Salhi, S., 2002. "An investigation into a new class of vehicle routing problem with backhauls," Omega, Elsevier, vol. 30(6), pages 479-487, December.
    19. Soares, Ricardo & Marques, Alexandra & Amorim, Pedro & Rasinmäki, Jussi, 2019. "Multiple vehicle synchronisation in a full truck-load pickup and delivery problem: A case-study in the biomass supply chain," European Journal of Operational Research, Elsevier, vol. 277(1), pages 174-194.
    20. 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.
    21. Davis, Lauren B. & Sengul, Irem & Ivy, Julie S. & Brock, Luther G. & Miles, Lastella, 2014. "Scheduling food bank collections and deliveries to ensure food safety and improve access," Socio-Economic Planning Sciences, Elsevier, vol. 48(3), pages 175-188.
    22. G. Gutiérrez-Jarpa & V. Marianov & C. Obreque, 2009. "A single vehicle routing problem with fixed delivery and optional collections," IISE Transactions, Taylor & Francis Journals, vol. 41(12), pages 1067-1079.
    23. Michela Lai & Maria Battarra & Massimo Di Francesco & Paola Zuddas, 2015. "An adaptive guidance meta-heuristic for the vehicle routing problem with splits and clustered backhauls," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(7), pages 1236-1236, July.
    24. Patrick Hirsch, 2011. "Minimizing Empty Truck Loads in Round Timber Transport with Tabu Search Strategies," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 4(2), pages 15-41, April.
    25. YazgI Tütüncü, G. & Carreto, Carlos A.C. & Baker, Barrie M., 2009. "A visual interactive approach to classical and mixed vehicle routing problems with backhauls," Omega, Elsevier, vol. 37(1), pages 138-154, February.
    26. Wei Yu & Zhaohui Liu, 2014. "Vehicle routing problems with regular objective functions on a path," Naval Research Logistics (NRL), John Wiley & Sons, vol. 61(1), pages 34-43, 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. Nilufer Nilufer, 2020. "Critical assessment on business strategy from aviation to retail industry during COVID-19 Pandemic: A WalMart Case," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 2(2), pages 8-14, April.
    2. Kenneth Stoop & Mario Pickavet & Didier Colle & Pieter Audenaert, 2024. "Selective Backhauls in Truck Transport with Risk Mitigation: Large Belgian Retailer Case Study," Networks and Spatial Economics, Springer, vol. 24(1), pages 99-130, March.
    3. Usama Awan & Robert Sroufe & Karoly Bozan, 2022. "Designing Value Chains for Industry 4.0 and a Circular Economy: A Review of the Literature," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    4. Aringhieri, Roberto & Duma, Davide & Landa, Paolo & Mancini, Simona, 2022. "Combining workload balance and patient priority maximisation in operating room planning through hierarchical multi-objective optimisation," European Journal of Operational Research, Elsevier, vol. 298(2), pages 627-643.
    5. Lijun Liu & Zhixin Long & Chuangchuang Kou & Haozeng Guo & Xinyu Li, 2023. "Evaluation of the Environmental Cost of Integrated Inbound Logistics: A Case Study of a Gigafactory of a Chinese Logistics Firm," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    6. Santos, Maria João & Jorge, Diana & Ramos, Tânia & Barbosa-Póvoa, Ana, 2023. "Green reverse logistics: Exploring the vehicle routing problem with deliveries and pickups," Omega, Elsevier, vol. 118(C).
    7. Lin, Meiyan & Lin, Shaodan & Ma, Lijun & Zhang, Lianmin, 2022. "The value of the Physical Internet on the meals-on-wheels delivery system," International Journal of Production Economics, Elsevier, vol. 248(C).
    8. Santos, Maria João & Curcio, Eduardo & Amorim, Pedro & Carvalho, Margarida & Marques, Alexandra, 2021. "A bilevel approach for the collaborative transportation planning problem," International Journal of Production Economics, Elsevier, vol. 233(C).

    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. Maria João Santos & Pedro Amorim & Alexandra Marques & Ana Carvalho & Ana Póvoa, 2020. "The vehicle routing problem with backhauls towards a sustainability perspective: a review," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(2), pages 358-401, July.
    2. Santos, Maria João & Curcio, Eduardo & Mulati, Mauro Henrique & Amorim, Pedro & Miyazawa, Flávio Keidi, 2020. "A robust optimization approach for the vehicle routing problem with selective backhauls," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    3. C. Y. Lam, 2021. "Optimizing logistics routings in a network perspective of supply and demand nodes," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(1), pages 357-377, March.
    4. Wang, Hsiao-Fan & Chen, Ying-Yen, 2013. "A coevolutionary algorithm for the flexible delivery and pickup problem with time windows," International Journal of Production Economics, Elsevier, vol. 141(1), pages 4-13.
    5. Gajpal, Yuvraj & Abad, P.L., 2009. "Multi-ant colony system (MACS) for a vehicle routing problem with backhauls," European Journal of Operational Research, Elsevier, vol. 196(1), pages 102-117, July.
    6. Yang, Senyan & Ning, Lianju & Shang, Pan & (Carol) Tong, Lu, 2020. "Augmented Lagrangian relaxation approach for logistics vehicle routing problem with mixed backhauls and time windows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 135(C).
    7. Dominguez, Oscar & Guimarans, Daniel & Juan, Angel A. & de la Nuez, Ignacio, 2016. "A Biased-Randomised Large Neighbourhood Search for the two-dimensional Vehicle Routing Problem with Backhauls," European Journal of Operational Research, Elsevier, vol. 255(2), pages 442-462.
    8. S Mitra, 2008. "A parallel clustering technique for the vehicle routing problem with split deliveries and pickups," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1532-1546, November.
    9. Julio C. Londoño & Rafael D. Tordecilla & Leandro do C. Martins & Angel A. Juan, 2021. "A biased-randomized iterated local search for the vehicle routing problem with optional backhauls," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(2), pages 387-416, July.
    10. 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.
    11. Bustos-Coral, Daniel & Costa, Alysson M., 2022. "Drayage routing with heterogeneous fleet, compatibility constraints, and truck load configurations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    12. Canan G. Corlu & Rocio de la Torre & Adrian Serrano-Hernandez & Angel A. Juan & Javier Faulin, 2020. "Optimizing Energy Consumption in Transportation: Literature Review, Insights, and Research Opportunities," Energies, MDPI, vol. 13(5), pages 1-33, March.
    13. Palhazi Cuervo, Daniel & Goos, Peter & Sörensen, Kenneth & Arráiz, Emely, 2014. "An iterated local search algorithm for the vehicle routing problem with backhauls," European Journal of Operational Research, Elsevier, vol. 237(2), pages 454-464.
    14. Bergmann, Felix M. & Wagner, Stephan M. & Winkenbach, Matthias, 2020. "Integrating first-mile pickup and last-mile delivery on shared vehicle routes for efficient urban e-commerce distribution," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 26-62.
    15. Ganesh, K. & Narendran, T.T., 2007. "CLOVES: A cluster-and-search heuristic to solve the vehicle routing problem with delivery and pick-up," European Journal of Operational Research, Elsevier, vol. 178(3), pages 699-717, May.
    16. Fatih Kocatürk & G. Yazgı Tütüncü & Said Salhi, 2021. "The multi-depot heterogeneous VRP with backhauls: formulation and a hybrid VNS with GRAMPS meta-heuristic approach," Annals of Operations Research, Springer, vol. 307(1), pages 277-302, December.
    17. Puca Huachi Vaz Penna & Anand Subramanian & Luiz Satoru Ochi & Thibaut Vidal & Christian Prins, 2019. "A hybrid heuristic for a broad class of vehicle routing problems with heterogeneous fleet," Annals of Operations Research, Springer, vol. 273(1), pages 5-74, February.
    18. José Brandão, 2016. "A deterministic iterated local search algorithm for the vehicle routing problem with backhauls," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 24(2), pages 445-465, July.
    19. Reil, Sebastian & Bortfeldt, Andreas & Mönch, Lars, 2018. "Heuristics for vehicle routing problems with backhauls, time windows, and 3D loading constraints," European Journal of Operational Research, Elsevier, vol. 266(3), pages 877-894.
    20. Queiroga, Eduardo & Frota, Yuri & Sadykov, Ruslan & Subramanian, Anand & Uchoa, Eduardo & Vidal, Thibaut, 2020. "On the exact solution of vehicle routing problems with backhauls," European Journal of Operational Research, Elsevier, vol. 287(1), pages 76-89.

    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:jomega:v:92:y:2020:i:c:s0305048319300350. 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/wps/find/journaldescription.cws_home/375/description#description .

    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.