IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v147y2014ipcp593-604.html
   My bibliography  Save this article

Mixed integer and heuristics model for the inventory routing problem in fuel delivery

Author

Listed:
  • Vidović, Milorad
  • Popović, Dražen
  • Ratković, Branislava

Abstract

This paper presents solution approaches for the multi-product multi-period Inventory Routing Problem (IRP) in fuel delivery. A homogeneous fleet of vehicles with compartments is used for fuel distribution from one depot to a set of petrol stations that have deterministic fuel consumption. The IRP consists of two mutually dependent sub-problems, those of inventory and routing, in a Vendor Management Inventory (VMI) environment in which suppliers determine the quantities and time periods of the deliveries. For solving the IRP, we propose a Mixed Integer Programming (MIP) model and a heuristic approach with and without fleet size costs, to observe the impact of these costs on the solutions that are obtained. The heuristics model is based on constructive heuristics with two Variable Neighborhood Descent (VND) search types: a local intra-period search and a large inter-period neighborhood search. Both of these approaches were tested on numerical examples for which the results, together with the performances of the proposed models, are presented. A combination of good computational time and good quality solutions suggests the use of the proposed heuristics on problems with realistic dimensions where the MIP model cannot find an optimal solution in a reasonable amount of time.

Suggested Citation

  • Vidović, Milorad & Popović, Dražen & Ratković, Branislava, 2014. "Mixed integer and heuristics model for the inventory routing problem in fuel delivery," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 593-604.
    • Handle: RePEc:eee:proeco:v:147:y:2014:i:pc:p:593-604
    DOI: 10.1016/j.ijpe.2013.04.034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527313001989
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2013.04.034?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. Ann Melissa Campbell & Martin W. P. Savelsbergh, 2004. "A Decomposition Approach for the Inventory-Routing Problem," Transportation Science, INFORMS, vol. 38(4), pages 488-502, November.
    2. Raa, Birger & Aghezzaf, El-Houssaine, 2008. "Designing distribution patterns for long-term inventory routing with constant demand rates," International Journal of Production Economics, Elsevier, vol. 112(1), pages 255-263, March.
    3. S. Viswanathan & Kamlesh Mathur, 1997. "Integrating Routing and Inventory Decisions in One-Warehouse Multiretailer Multiproduct Distribution Systems," Management Science, INFORMS, vol. 43(3), pages 294-312, March.
    4. Webb, Ian R. & Larson, Richard C., 1995. "Period and phase of customer replenishment: A new approach to the Strategic Inventory/Routing problem," European Journal of Operational Research, Elsevier, vol. 85(1), pages 132-148, August.
    5. Bertazzi, Luca & Speranza, Maria Grazia & Ukovich, Walter, 1997. "Minimization of logistic costs with given frequencies," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 327-340, August.
    6. Yugang Yu & Chengbin Chu & Haoxun Chen & Feng Chu, 2012. "Large scale stochastic inventory routing problems with split delivery and service level constraints," Annals of Operations Research, Springer, vol. 197(1), pages 135-158, August.
    7. Yu, Yugang & Chen, Haoxun & Chu, Feng, 2008. "A new model and hybrid approach for large scale inventory routing problems," European Journal of Operational Research, Elsevier, vol. 189(3), pages 1022-1040, September.
    8. Huang, Shan-Huen & Lin, Pei-Chun, 2010. "A modified ant colony optimization algorithm for multi-item inventory routing problems with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 598-611, September.
    9. Herer, Yale T. & Levy, Roberto, 1997. "The Metered Inventory Routing Problem, an integrative heuristic algorithm," International Journal of Production Economics, Elsevier, vol. 51(1-2), pages 69-81, August.
    10. Moin, N.H. & Salhi, S. & Aziz, N.A.B., 2011. "An efficient hybrid genetic algorithm for the multi-product multi-period inventory routing problem," International Journal of Production Economics, Elsevier, vol. 133(1), pages 334-343, September.
    11. Yu, Yugang & Wang, Zheng & Liang, Liang, 2012. "A vendor managed inventory supply chain with deteriorating raw materials and products," International Journal of Production Economics, Elsevier, vol. 136(2), pages 266-274.
    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. Tino Henke & M. Grazia Speranza & Gerhard Wäscher, 2019. "A branch-and-cut algorithm for the multi-compartment vehicle routing problem with flexible compartment sizes," Annals of Operations Research, Springer, vol. 275(2), pages 321-338, April.
    2. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    3. Ostermeier, Manuel & Henke, Tino & Hübner, Alexander & Wäscher, Gerhard, 2021. "Multi-compartment vehicle routing problems: State-of-the-art, modeling framework and future directions," European Journal of Operational Research, Elsevier, vol. 292(3), pages 799-817.
    4. Manousakis, Eleftherios & Repoussis, Panagiotis & Zachariadis, Emmanouil & Tarantilis, Christos, 2021. "Improved branch-and-cut for the Inventory Routing Problem based on a two-commodity flow formulation," European Journal of Operational Research, Elsevier, vol. 290(3), pages 870-885.
    5. Cheng, Chun & Qi, Mingyao & Wang, Xingyi & Zhang, Ying, 2016. "Multi-period inventory routing problem under carbon emission regulations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 263-275.
    6. Alinaghian, Mahdi & Shokouhi, Nadia, 2018. "Multi-depot multi-compartment vehicle routing problem, solved by a hybrid adaptive large neighborhood search," Omega, Elsevier, vol. 76(C), pages 85-99.
    7. Lahyani, Rahma & Coelho, Leandro C. & Khemakhem, Mahdi & Laporte, Gilbert & Semet, Frédéric, 2015. "A multi-compartment vehicle routing problem arising in the collection of olive oil in Tunisia," Omega, Elsevier, vol. 51(C), pages 1-10.
    8. Gu, Wenjuan & Archetti, Claudia & Cattaruzza, Diego & Ogier, Maxime & Semet, Frédéric & Speranza, M. Grazia, 2024. "Vehicle routing problems with multiple commodities: A survey," European Journal of Operational Research, Elsevier, vol. 317(1), pages 1-15.
    9. Coelho, Leandro C. & Laporte, Gilbert, 2015. "Classification, models and exact algorithms for multi-compartment delivery problems," European Journal of Operational Research, Elsevier, vol. 242(3), pages 854-864.
    10. Alaei, Saeed & Setak, Mostafa, 2015. "Multi objective coordination of a supply chain with routing and service level consideration," International Journal of Production Economics, Elsevier, vol. 167(C), pages 271-281.
    11. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    12. Bani, Abderrahman & El Hallaoui, Issmail & Corréa, Ayoub Insa & Tahir, Adil, 2023. "Solving a real-world multi-depot multi-period petrol replenishment problem with complex loading constraints," European Journal of Operational Research, Elsevier, vol. 311(1), pages 154-172.
    13. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.
    14. Lobo, Benjamin J. & Brown, Donald E. & Gerber, Matthew S. & Grazaitis, Peter J., 2018. "A transient stochastic simulation–optimization model for operational fuel planning in-theater," European Journal of Operational Research, Elsevier, vol. 264(2), pages 637-652.
    15. Cho, Jaeyoung & Lim, Gino J. & Kim, Seon Jin & Biobaku, Taofeek, 2018. "Liquefied natural gas inventory routing problem under uncertain weather conditions," International Journal of Production Economics, Elsevier, vol. 204(C), pages 18-29.

    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. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    2. Jafarian, Ahmad & Asgari, Nasrin & Mohri, Seyed Sina & Fatemi-Sadr, Elham & Farahani, Reza Zanjirani, 2019. "The inventory-routing problem subject to vehicle failure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 254-294.
    3. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
    4. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.
    5. N H Moin & S Salhi, 2007. "Inventory routing problems: a logistical overview," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1185-1194, September.
    6. Liu, Ming & Liu, Xin & Chu, Feng & Zheng, Feifeng & Chu, Chengbin, 2019. "Distributionally robust inventory routing problem to maximize the service level under limited budget," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 190-211.
    7. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    8. Paredes-Belmar, Germán & Marianov, Vladimir & Bronfman, Andrés & Obreque, Carlos & Lüer-Villagra, Armin, 2016. "A milk collection problem with blending," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 26-43.
    9. 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.
    10. Ali Ekici & Okan Örsan Özener & Gültekin Kuyzu, 2015. "Cyclic Delivery Schedules for an Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 817-829, November.
    11. Li, Ming & Wang, Zheng & Chan, Felix T.S., 2016. "A robust inventory routing policy under inventory inaccuracy and replenishment lead-time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 290-305.
    12. Cheng, Chun & Qi, Mingyao & Wang, Xingyi & Zhang, Ying, 2016. "Multi-period inventory routing problem under carbon emission regulations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 263-275.
    13. Emre Çankaya & Ali Ekici & Okan Örsan Özener, 2019. "Humanitarian relief supplies distribution: an application of inventory routing problem," Annals of Operations Research, Springer, vol. 283(1), pages 119-141, December.
    14. Oğuz Solyalı & Haldun Süral, 2011. "A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem," Transportation Science, INFORMS, vol. 45(3), pages 335-345, August.
    15. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    16. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    17. Oğuz Solyalı & Jean-François Cordeau & Gilbert Laporte, 2012. "Robust Inventory Routing Under Demand Uncertainty," Transportation Science, INFORMS, vol. 46(3), pages 327-340, August.
    18. Raa, Birger, 2015. "Fleet optimization for cyclic inventory routing problems," International Journal of Production Economics, Elsevier, vol. 160(C), pages 172-181.
    19. Timajchi, Ali & Mirzapour Al-e-Hashem, Seyed M.J. & Rekik, Yacine, 2019. "Inventory routing problem for hazardous and deteriorating items in the presence of accident risk with transshipment option," International Journal of Production Economics, Elsevier, vol. 209(C), pages 302-315.
    20. Li, Kunpeng & Chen, Bin & Sivakumar, Appa Iyer & Wu, Yong, 2014. "An inventory–routing problem with the objective of travel time minimization," European Journal of Operational Research, Elsevier, vol. 236(3), pages 936-945.

    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:proeco:v:147:y:2014:i:pc:p:593-604. 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/ijpe .

    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.