IDEAS home Printed from https://ideas.repec.org/a/spr/cejnor/v33y2025i1d10.1007_s10100-024-00911-6.html
   My bibliography  Save this article

A fix and optimize method based approximate dynamic programming approach for the strategic fleet sizing and delivery planning problem

Author

Listed:
  • Duygu Aghazadeh

    (University of Turkish Aeronautical Association)

  • Kadir Ertogral

    (Qatar University)

Abstract

Logistics related costs constitute a major part in total cost of a product in general. Considering a company that delivers goods to its customers using its owned fleet, fleet ownership and operational costs together with the inventory costs compose the total logistics costs. In this study, we suggest an approximate Dynamic Programming algorithm, with a look ahead strategy, that uses the fix and optimize method as the imbedded heuristic for solving integrated fleet composition and replenishment planning problem. The total annual distribution cost factors considered in the problem are vehicle ownership costs, approximate routing costs, and inventory related costs. In this problem, we aim to minimize the total logistic cost by optimizing the fleet composition, replenishment patterns, and customers assigned to each vehicle in the fleet. We produced a set of reasonably large instances randomly and showed the efficacy of the suggested solution method.

Suggested Citation

  • Duygu Aghazadeh & Kadir Ertogral, 2025. "A fix and optimize method based approximate dynamic programming approach for the strategic fleet sizing and delivery planning problem," 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. 33(1), pages 91-119, March.
    • Handle: RePEc:spr:cejnor:v:33:y:2025:i:1:d:10.1007_s10100-024-00911-6
    DOI: 10.1007/s10100-024-00911-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10100-024-00911-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10100-024-00911-6?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. Luca Bertazzi & Maria Grazia Speranza & Walter Ukovich, 2000. "Exact and Heuristic Solutions for a Shipment Problem with Given Frequencies," Management Science, INFORMS, vol. 46(7), pages 973-988, July.
    2. Dimitris Bertsimas & Ramazan Demir, 2002. "An Approximate Dynamic Programming Approach to Multidimensional Knapsack Problems," Management Science, INFORMS, vol. 48(4), pages 550-565, April.
    3. Bertazzi, Luca & Grazia Speranza, Maria, 1999. "Inventory control on sequences of links with given transportation frequencies," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 261-270, March.
    4. Astaraky, Davood & Patrick, Jonathan, 2015. "A simulation based approximate dynamic programming approach to multi-class, multi-resource surgical scheduling," European Journal of Operational Research, Elsevier, vol. 245(1), pages 309-319.
    5. Awi Federgruen & Joern Meissner & Michal Tzur, 2007. "Progressive Interval Heuristics for Multi-Item Capacitated Lot-Sizing Problems," Operations Research, INFORMS, vol. 55(3), pages 490-502, June.
    6. 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.
    7. Silva, Thiago A.O. & de Souza, Mauricio C., 2020. "Surgical scheduling under uncertainty by approximate dynamic programming," Omega, Elsevier, vol. 95(C).
    8. Liu, Shuguang & Huang, Weilai & Ma, Huiming, 2009. "An effective genetic algorithm for the fleet size and mix vehicle routing problems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(3), pages 434-445, May.
    9. Hugo P. Simão & Jeff Day & Abraham P. George & Ted Gifford & John Nienow & Warren B. Powell, 2009. "An Approximate Dynamic Programming Algorithm for Large-Scale Fleet Management: A Case Application," Transportation Science, INFORMS, vol. 43(2), pages 178-197, May.
    10. M. G. Speranza & W. Ukovich, 1996. "An algorithm for optimal shipments with given frequencies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(5), pages 655-671, August.
    11. Helber, Stefan & Sahling, Florian, 2010. "A fix-and-optimize approach for the multi-level capacitated lot sizing problem," International Journal of Production Economics, Elsevier, vol. 123(2), pages 247-256, February.
    12. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    13. Maria Grazia Speranza & Walter Ukovich, 1994. "Minimizing Transportation and Inventory Costs for Several Products on a Single Link," Operations Research, INFORMS, vol. 42(5), pages 879-894, October.
    14. Chen, Haoxun, 2015. "Fix-and-optimize and variable neighborhood search approaches for multi-level capacitated lot sizing problems," Omega, Elsevier, vol. 56(C), pages 25-36.
    15. Peter J. H. Hulshof & Martijn R. K. Mes & Richard J. Boucherie & Erwin W. Hans, 2016. "Patient admission planning using Approximate Dynamic Programming," Flexible Services and Manufacturing Journal, Springer, vol. 28(1), pages 30-61, June.
    Full references (including those not matched with items on IDEAS)

    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. Bertazzi, Luca & Moezi, Sarem Deilami & Maggioni, Francesca, 2021. "The value of integration of full container load, less than container load and air freight shipments in vendor–managed inventory systems," International Journal of Production Economics, Elsevier, vol. 241(C).
    2. Luca Bertazzi & Maria Grazia Speranza, 1999. "Minimizing logistic costs in multistage supply chains," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(4), pages 399-417, June.
    3. Gökalp, E. & Gülpınar, N. & Doan, X.V., 2023. "Dynamic surgery management under uncertainty," European Journal of Operational Research, Elsevier, vol. 309(2), pages 832-844.
    4. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    5. Katerina P. Papadaki & Warren B. Powell, 2003. "An adaptive dynamic programming algorithm for a stochastic multiproduct batch dispatch problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 50(7), pages 742-769, October.
    6. Luca Bertazzi, 2008. "Analysis of Direct Shipping Policies in an Inventory-Routing Problem with Discrete Shipping Times," Management Science, INFORMS, vol. 54(4), pages 748-762, April.
    7. Al-Shihabi, Sameh, 2021. "A Novel Core-Based Optimization Framework for Binary Integer Programs- the Multidemand Multidimesional Knapsack Problem as a Test Problem," Operations Research Perspectives, Elsevier, vol. 8(C).
    8. Wei, Mingyuan & Qi, Mingyao & Wu, Tao & Zhang, Canrong, 2019. "Distance and matching-induced search algorithm for the multi-level lot-sizing problem with substitutable bill of materials," European Journal of Operational Research, Elsevier, vol. 277(2), pages 521-541.
    9. Absi, Nabil & van den Heuvel, Wilco, 2019. "Worst case analysis of Relax and Fix heuristics for lot-sizing problems," European Journal of Operational Research, Elsevier, vol. 279(2), pages 449-458.
    10. Lang, Jan Christian & Shen, Zuo-Jun Max, 2011. "Fix-and-optimize heuristics for capacitated lot-sizing with sequence-dependent setups and substitutions," European Journal of Operational Research, Elsevier, vol. 214(3), pages 595-605, November.
    11. Pan, Zhendong & Tang, Jiafu & Fung, Richard Y.K., 2009. "Synchronization of inventory and transportation under flexible vehicle constraint: A heuristics approach using sliding windows and hierarchical tree structure," European Journal of Operational Research, Elsevier, vol. 192(3), pages 824-836, February.
    12. Yilmaz, Dogacan & Büyüktahtakın, İ. Esra, 2024. "An expandable machine learning-optimization framework to sequential decision-making," European Journal of Operational Research, Elsevier, vol. 314(1), pages 280-296.
    13. 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.
    14. Lap Mui Ann Chan & M. Grazia Speranza & Luca Bertazzi, 2013. "Asymptotic analysis of periodic policies for the inventory routing problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(7), pages 525-540, October.
    15. Heydar, Mojtaba & Mardaneh, Elham & Loxton, Ryan, 2022. "Approximate dynamic programming for an energy-efficient parallel machine scheduling problem," European Journal of Operational Research, Elsevier, vol. 302(1), pages 363-380.
    16. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    17. Boutarfa, Y. & Senoussi, A. & Brahimi, N. & Aouam, T., 2024. "Integration and substitution in hybrid manufacturing and refurbishing systems," International Journal of Production Economics, Elsevier, vol. 274(C).
    18. Dall'Orto, Leonardo Campo & Crainic, Teodor Gabriel & Leal, Jose Eugenio & Powell, Warren B., 2006. "The single-node dynamic service scheduling and dispatching problem," European Journal of Operational Research, Elsevier, vol. 170(1), pages 1-23, April.
    19. 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.
    20. Antoine Sauré & Jonathan Patrick & Martin L. Puterman, 2015. "Simulation-Based Approximate Policy Iteration with Generalized Logistic Functions," INFORMS Journal on Computing, INFORMS, vol. 27(3), pages 579-595, August.

    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:spr:cejnor:v:33:y:2025:i:1:d:10.1007_s10100-024-00911-6. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.