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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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    5. 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.
    6. 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.
    7. 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.
    8. Raa, Birger & Aouam, Tarik, 2021. "Multi-vehicle stochastic cyclic inventory routing with guaranteed replenishments," International Journal of Production Economics, Elsevier, vol. 234(C).
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    12. 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.
    13. 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.
    14. 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.
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