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Optimizing production levels in maritime inventory routing with load-dependent speed optimization

Author

Listed:
  • Abdalrahman Algendi

    (Molde University College)

  • Sebastián Urrutia

    (Molde University College)

  • Lars Magnus Hvattum

    (Molde University College)

Abstract

Maritime inventory routing problems with load-dependent speed optimization involves determining optimal routes, as well as vessel speeds and loads at these routes, so that inventory limits are satisfied at both production and consumption ports. This paper considers a variant where production rates can be selected from several available alternative production levels, as opposed to the normal situation where production rates are chosen a priori. In both cases, production rates remain constant for the duration of the planning horizon. The effect on transportation costs when considering production levels as decision variables is evaluated. The resulting solutions are compared with solutions obtained when production rates are considered as fixed parameters. Computational experiments on a set of benchmark instances from the literature confirm that the process of determining the optimal production levels plays a crucial role in improving the solutions to maritime inventory routing problems with load-dependent speed optimization. Optimizing the production levels can reduce transportation costs by up to 35%.

Suggested Citation

  • Abdalrahman Algendi & Sebastián Urrutia & Lars Magnus Hvattum, 2023. "Optimizing production levels in maritime inventory routing with load-dependent speed optimization," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 111-141, March.
    • Handle: RePEc:spr:flsman:v:35:y:2023:i:1:d:10.1007_s10696-022-09460-z
    DOI: 10.1007/s10696-022-09460-z
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    References listed on IDEAS

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    1. Agostinho Agra & Marielle Christiansen & Lars Magnus Hvattum & Filipe Rodrigues, 2018. "Robust Optimization for a Maritime Inventory Routing Problem," Transportation Science, INFORMS, vol. 52(3), pages 509-525, June.
    2. Li, Yantong & Chu, Feng & Chu, Chengbin & Zhu, Zhanguo, 2019. "An efficient three-level heuristic for the large-scaled multi-product production routing problem with outsourcing," European Journal of Operational Research, Elsevier, vol. 272(3), pages 914-927.
    3. Gustavo Souto dos Santos Diz & Silvio Hamacher & Fabricio Oliveira, 2019. "A robust optimization model for the maritime inventory routing problem," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 675-701, September.
    4. AGRA, Agostinho & ANDERSSON, Henrik & CHRISTIANSEN, Marielle & WOLSEY, Laurence A., 2013. "A maritime inventory routing problem: discrete time formulations and valid inequalities," LIDAM Reprints CORE 2584, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Rodrigues, Filipe & Agra, Agostinho & Christiansen, Marielle & Hvattum, Lars Magnus & Requejo, Cristina, 2019. "Comparing techniques for modelling uncertainty in a maritime inventory routing problem," European Journal of Operational Research, Elsevier, vol. 277(3), pages 831-845.
    6. Russell, Robert A., 2017. "Mathematical programming heuristics for the production routing problem," International Journal of Production Economics, Elsevier, vol. 193(C), pages 40-49.
    7. Faramroze G. Engineer & Kevin C. Furman & George L. Nemhauser & Martin W. P. Savelsbergh & Jin-Hwa Song, 2012. "A Branch-Price-and-Cut Algorithm for Single-Product Maritime Inventory Routing," Operations Research, INFORMS, vol. 60(1), pages 106-122, February.
    8. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
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    Cited by:

    1. Kjetil Fagerholt & Leonard Heilig & Eduardo Lalla-Ruiz & Frank Meisel & Shuaian Wang, 2023. "Data-driven optimization and analytics for maritime logistics," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 1-4, March.

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