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Fleet optimization for cyclic inventory routing problems

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  • Raa, Birger

Abstract

This paper considers the optimization of a vehicle fleet to periodically repeat a given set of routes, whose frequencies can be adjusted if necessary. The objective is to minimize the overall cost rate, consisting of fixed vehicle costs, route-specific costs and holding costs at the customers being periodically replenished, where these latter two cost components depend on the selected frequency of the routes. First, this fleet design problem is formally described in a non-linear mathematical model, and a linear model is presented for the situation where frequencies are limited to a given set of values. Then, a multi-start two-phase heuristic solution method is proposed consisting of an insertion-based construction phase and a local search-based improvement phase. The performance of the solution approach and its capability in finding the appropriate cost trade-offs are shown in a design of experiments.

Suggested Citation

  • Raa, Birger, 2015. "Fleet optimization for cyclic inventory routing problems," International Journal of Production Economics, Elsevier, vol. 160(C), pages 172-181.
    • Handle: RePEc:eee:proeco:v:160:y:2015:i:c:p:172-181
    DOI: 10.1016/j.ijpe.2014.10.006
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    Cited by:

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    6. 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.
    7. Emde, Simon & Tahirov, Nail & Gendreau, Michel & Glock, Christoph H., 2021. "Routing automated lane-guided transport vehicles in a warehouse handling returns," European Journal of Operational Research, Elsevier, vol. 292(3), pages 1085-1098.
    8. Zenker, Michael & Emde, Simon & Boysen, Nils, 2016. "Cyclic inventory routing in a line-shaped network," European Journal of Operational Research, Elsevier, vol. 250(1), pages 164-178.
    9. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
    10. 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).
    11. Raa, Birger & Dullaert, Wout, 2017. "Route and fleet design for cyclic inventory routing," European Journal of Operational Research, Elsevier, vol. 256(2), pages 404-411.
    12. Daniel Arturo Olivares Vera & Elias Olivares-Benitez & Eleazar Puente Rivera & Mónica López-Campos & Pablo A. Miranda, 2018. "Combined Use of Mathematical Optimization and Design of Experiments for the Maximization of Profit in a Four-Echelon Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-25, April.
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    14. Bertazzi, Luca & Coelho, Leandro C. & De Maio, Annarita & Laganà, Demetrio, 2019. "A matheuristic algorithm for the multi-depot inventory routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 524-544.
    15. Bertazzi, Luca & Chua, Geoffrey A. & Laganà, Demetrio & Paradiso, Rosario, 2022. "Analysis of effective sets of routes for the split-delivery periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 463-477.
    16. Rau, Hsin & Budiman, Syarif Daniel & Widyadana, Gede Agus, 2018. "Optimization of the multi-objective green cyclical inventory routing problem using discrete multi-swarm PSO method," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 51-75.
    17. Divsalar, Ali & Vansteenwegen, Pieter, 2016. "A two-phase algorithm for the cyclic inventory routing problemAuthor-Name: Chitsaz, Masoud," European Journal of Operational Research, Elsevier, vol. 254(2), pages 410-426.

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