IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v70y2014icp305-323.html
   My bibliography  Save this article

Hybrid metaheuristic solutions to inventory location routing problem

Author

Listed:
  • Zhang, Ying
  • Qi, Mingyao
  • Miao, Lixin
  • Liu, Erchao

Abstract

This paper considers a supply chain network with multiple depots and geographically dispersed customers, each of which faces non-constant demand over a discrete planning horizon. The goal is to determine a set of depots to open, the delivery quantities to customers per period and the sequence in which they are replenished by a vehicle fleet such that the total system-wide cost is minimized. To solve it, first we construct a mixed integer program, and then propose a hybrid metaheuristic consisting of initialization, intensification and post-optimization. Results show that the proposed heuristic is considerably efficient and effective for many classical instances.

Suggested Citation

  • Zhang, Ying & Qi, Mingyao & Miao, Lixin & Liu, Erchao, 2014. "Hybrid metaheuristic solutions to inventory location routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 305-323.
    • Handle: RePEc:eee:transe:v:70:y:2014:i:c:p:305-323
    DOI: 10.1016/j.tre.2014.07.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554514001318
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2014.07.010?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. Mete, Huseyin Onur & Zabinsky, Zelda B., 2010. "Stochastic optimization of medical supply location and distribution in disaster management," International Journal of Production Economics, Elsevier, vol. 126(1), pages 76-84, July.
    2. Miranda, Pablo A. & Garrido, Rodrigo A., 2008. "Valid inequalities for Lagrangian relaxation in an inventory location problem with stochastic capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(1), pages 47-65, January.
    3. Barreto, Sergio & Ferreira, Carlos & Paixao, Jose & Santos, Beatriz Sousa, 2007. "Using clustering analysis in a capacitated location-routing problem," European Journal of Operational Research, Elsevier, vol. 179(3), pages 968-977, June.
    4. César Rego, 1998. "A Subpath Ejection Method for the Vehicle Routing Problem," Management Science, INFORMS, vol. 44(10), pages 1447-1459, October.
    5. Marius M. Solomon, 1987. "Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints," Operations Research, INFORMS, vol. 35(2), pages 254-265, April.
    6. Guerrero, W.J. & Prodhon, C. & Velasco, N. & Amaya, C.A., 2013. "Hybrid heuristic for the inventory location-routing problem with deterministic demand," International Journal of Production Economics, Elsevier, vol. 146(1), pages 359-370.
    7. Nozick, Linda K. & Turnquist, Mark A., 1998. "Integrating inventory impacts into a fixed-charge model for locating distribution centers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(3), pages 173-186, September.
    8. Rennemo, Sigrid Johansen & Rø, Kristina Fougner & Hvattum, Lars Magnus & Tirado, Gregorio, 2014. "A three-stage stochastic facility routing model for disaster response planning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 62(C), pages 116-135.
    9. Luca Bertazzi & Giuseppe Paletta & M. Grazia Speranza, 2002. "Deterministic Order-Up-To Level Policies in an Inventory Routing Problem," Transportation Science, INFORMS, vol. 36(1), pages 119-132, February.
    10. Max Shen, Zuo-Jun & Qi, Lian, 2007. "Incorporating inventory and routing costs in strategic location models," European Journal of Operational Research, Elsevier, vol. 179(2), pages 372-389, June.
    11. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
    12. Cha, B.C. & Moon, I.K. & Park, J.H., 2008. "The joint replenishment and delivery scheduling of the one-warehouse, n-retailer system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 720-730, September.
    13. 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.
    14. Paolo Toth & Daniele Vigo, 2003. "The Granular Tabu Search and Its Application to the Vehicle-Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 15(4), pages 333-346, November.
    15. S. Anily & A. Federgruen, 1990. "One Warehouse Multiple Retailer Systems with Vehicle Routing Costs," Management Science, INFORMS, vol. 36(1), pages 92-114, January.
    16. Ahmadi Javid, Amir & Azad, Nader, 2010. "Incorporating location, routing and inventory decisions in supply chain network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 582-597, September.
    17. 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.
    18. Ambrosino, Daniela & Grazia Scutella, Maria, 2005. "Distribution network design: New problems and related models," European Journal of Operational Research, Elsevier, vol. 165(3), pages 610-624, September.
    19. Ting, Ching-Jung & Chen, Chia-Ho, 2013. "A multiple ant colony optimization algorithm for the capacitated location routing problem," International Journal of Production Economics, Elsevier, vol. 141(1), pages 34-44.
    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. 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.
    2. Fattahi, Mohammad & Mahootchi, Masoud & Govindan, Kannan & Moattar Husseini, Seyed Mohammad, 2015. "Dynamic supply chain network design with capacity planning and multi-period pricing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 169-202.
    3. Shang, Xiaoting & Zhang, Guoqing & Jia, Bin & Almanaseer, Mohammed, 2022. "The healthcare supply location-inventory-routing problem: A robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    4. Lihua Liu & Lai Soon Lee & Hsin-Vonn Seow & Chuei Yee Chen, 2022. "Logistics Center Location-Inventory-Routing Problem Optimization: A Systematic Review Using PRISMA Method," Sustainability, MDPI, vol. 14(23), pages 1-39, November.
    5. Tapia-Ubeda, Francisco J. & Miranda, Pablo A. & Macchi, Marco, 2018. "A Generalized Benders Decomposition based algorithm for an inventory location problem with stochastic inventory capacity constraints," European Journal of Operational Research, Elsevier, vol. 267(3), pages 806-817.
    6. Zhang, Ying & Qi, Mingyao & Lin, Wei-Hua & Miao, Lixin, 2015. "A metaheuristic approach to the reliable location routing problem under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 90-110.
    7. Tran, Trung Hieu & Nguyen, Thu Ba T. & Le, Hoa Sen T. & Phung, Duc Chinh, 2024. "Formulation and solution technique for agricultural waste collection and transport network design," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1152-1169.
    8. Liu, Aijun & Zhu, Qiuyun & Xu, Lei & Lu, Qiang & Fan, Youqing, 2021. "Sustainable supply chain management for perishable products in emerging markets: An integrated location-inventory-routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 150(C).
    9. Zheng, Xiaojin & Yin, Meixia & Zhang, Yanxia, 2019. "Integrated optimization of location, inventory and routing in supply chain network design," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 1-20.
    10. 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.
    11. Zhao, Jiahong & Ke, Ginger Y., 2017. "Incorporating inventory risks in location-routing models for explosive waste management," International Journal of Production Economics, Elsevier, vol. 193(C), pages 123-136.
    12. Erfan Babaee Tirkolaee & Alireza Goli & Abbas Mardani, 2023. "A novel two-echelon hierarchical location-allocation-routing optimization for green energy-efficient logistics systems," Annals of Operations Research, Springer, vol. 324(1), pages 795-823, May.
    13. Chen Chao & Tian Zhihui & Yao Baozhen, 2019. "Optimization of two-stage location–routing–inventory problem with time-windows in food distribution network," Annals of Operations Research, Springer, vol. 273(1), pages 111-134, February.
    14. Schuster Puga, Matías & Tancrez, Jean-Sébastien, 2017. "A heuristic algorithm for solving large location–inventory problems with demand uncertainty," European Journal of Operational Research, Elsevier, vol. 259(2), pages 413-423.
    15. Gia-Shie Liu & Kuo-Ping Lin, 2020. "The Online Distribution System of Inventory-Routing Problem with Simultaneous Deliveries and Returns Concerning CO 2 Emission Cost," Mathematics, MDPI, vol. 8(6), pages 1-27, June.

    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. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
    2. Zhang, Ying & Qi, Mingyao & Lin, Wei-Hua & Miao, Lixin, 2015. "A metaheuristic approach to the reliable location routing problem under disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 90-110.
    3. Shang, Xiaoting & Zhang, Guoqing & Jia, Bin & Almanaseer, Mohammed, 2022. "The healthcare supply location-inventory-routing problem: A robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    4. Nadizadeh, Ali & Hosseini Nasab, Hasan, 2014. "Solving the dynamic capacitated location-routing problem with fuzzy demands by hybrid heuristic algorithm," European Journal of Operational Research, Elsevier, vol. 238(2), pages 458-470.
    5. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
    6. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    7. Lihua Liu & Lai Soon Lee & Hsin-Vonn Seow & Chuei Yee Chen, 2022. "Logistics Center Location-Inventory-Routing Problem Optimization: A Systematic Review Using PRISMA Method," Sustainability, MDPI, vol. 14(23), pages 1-39, November.
    8. 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.
    9. Wang, Qingyi & Nie, Xiaofeng, 2023. "A location-inventory-routing model for distributing emergency supplies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    10. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    11. Daniel Negrotto & Irene Loiseau, 2021. "A Branch & Cut algorithm for the prize-collecting capacitated location routing problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(1), pages 34-57, April.
    12. Zhao, Jiahong & Ke, Ginger Y., 2017. "Incorporating inventory risks in location-routing models for explosive waste management," International Journal of Production Economics, Elsevier, vol. 193(C), pages 123-136.
    13. 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.
    14. Lin Zhou & Xu Wang & Lin Ni & Yun Lin, 2016. "Location-Routing Problem with Simultaneous Home Delivery and Customer’s Pickup for City Distribution of Online Shopping Purchases," Sustainability, MDPI, vol. 8(8), pages 1-20, August.
    15. 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.
    16. 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.
    17. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    18. Drexl, M. & Schneider, M., 2014. "A Survey of the Standard Location-Routing Problem," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65940, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. 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.
    20. 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.

    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:transe:v:70:y:2014:i:c:p:305-323. 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/600244/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.