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Effective Heuristics for Multiproduct Partial Shipment Models

Author

Listed:
  • Milind Dawande

    (School of Management, University of Texas at Dallas, Mail Station SM 30, Richardson, Texas 75083-0688)

  • Srinagesh Gavirneni

    (Johnson Graduate School of Management, Cornell University, Ithaca, New York)

  • Sridhar Tayur

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania)

Abstract

Motivated by real applications, we consider the problem of shipping products to multiple customers from limited inventory. After formulating the optimization problems under different restrictions on partial shipments, we find that commercially available packages, applied directly, are unsatisfactory, as are simple greedy approaches. We develop a scheme of heuristics that enables the user to select a good balance between computation time and effectiveness. A detailed computational study of one- and two-period industrial-sized problems indicates that these heuristics are computationally practical and generate solutions that are, on average, within 3%--4% of the optimum.

Suggested Citation

  • Milind Dawande & Srinagesh Gavirneni & Sridhar Tayur, 2006. "Effective Heuristics for Multiproduct Partial Shipment Models," Operations Research, INFORMS, vol. 54(2), pages 337-352, April.
    • Handle: RePEc:inm:oropre:v:54:y:2006:i:2:p:337-352
    DOI: 10.1287/opre.1050.0263
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    References listed on IDEAS

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