IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v286y2020i2p523-537.html
   My bibliography  Save this article

A Benders decomposition-based approach for logistics service network design

Author

Listed:
  • Belieres, Simon
  • Hewitt, Mike
  • Jozefowiez, Nicolas
  • Semet, Frédéric
  • Van Woensel, Tom

Abstract

We propose an exact solution method for a Logistics Service Network Design Problem (LSNDP) inspired by the management of restaurant supply chains. In this problem, a distributor seeks to source and fulfill customer orders of products (fruits, meat, napkins, etc.) through a multi-echelon distribution network consisting of supplier locations, warehouses, and customer locations in a cost-effective manner. As these products are small relative to vehicle capacity, an effective strategy for achieving low transportation costs is consolidation. Specifically, routing products so that vehicles transport multiple products at a time, with each product potentially sourced by a different supplier and destined for a different customer. As instances of this problem of sizes relevant to the operations of an industrial partner are too large for off-the-shelf optimization solvers, we propose a suite of techniques for enhancing a Benders decomposition-based algorithm, including a strengthened master problem, valid inequalities, and a heuristic. Together, these enhancements enable the resulting method to produce provably high-quality solutions to multiple variants of the problem in reasonable run-times.

Suggested Citation

  • Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric & Van Woensel, Tom, 2020. "A Benders decomposition-based approach for logistics service network design," European Journal of Operational Research, Elsevier, vol. 286(2), pages 523-537.
    • Handle: RePEc:eee:ejores:v:286:y:2020:i:2:p:523-537
    DOI: 10.1016/j.ejor.2020.03.056
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221720302861
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2020.03.056?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. Jean-François Cordeau & Federico Pasin & Marius Solomon, 2006. "An integrated model for logistics network design," Annals of Operations Research, Springer, vol. 144(1), pages 59-82, April.
    2. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    3. Wang, Zujian & Qi, Mingyao & Cheng, Chun & Zhang, Canrong, 2019. "A hybrid algorithm for large-scale service network design considering a heterogeneous fleet," European Journal of Operational Research, Elsevier, vol. 276(2), pages 483-494.
    4. Dufour, Émilie & Laporte, Gilbert & Paquette, Julie & Rancourt, Marie–Ève, 2018. "Logistics service network design for humanitarian response in East Africa," Omega, Elsevier, vol. 74(C), pages 1-14.
    5. Michael Berliner Pedersen & Teodor Gabriel Crainic & Oli B. G. Madsen, 2009. "Models and Tabu Search Metaheuristics for Service Network Design with Asset-Balance Requirements," Transportation Science, INFORMS, vol. 43(2), pages 158-177, May.
    6. Gianni Codato & Matteo Fischetti, 2006. "Combinatorial Benders' Cuts for Mixed-Integer Linear Programming," Operations Research, INFORMS, vol. 54(4), pages 756-766, August.
    7. 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.
    8. T. L. Magnanti & R. T. Wong, 1981. "Accelerating Benders Decomposition: Algorithmic Enhancement and Model Selection Criteria," Operations Research, INFORMS, vol. 29(3), pages 464-484, June.
    9. Beamon, Benita M., 1998. "Supply chain design and analysis:: Models and methods," International Journal of Production Economics, Elsevier, vol. 55(3), pages 281-294, August.
    10. Crainic, Teodor Gabriel, 2000. "Service network design in freight transportation," European Journal of Operational Research, Elsevier, vol. 122(2), pages 272-288, April.
    11. Walter Rei & Jean-François Cordeau & Michel Gendreau & Patrick Soriano, 2009. "Accelerating Benders Decomposition by Local Branching," INFORMS Journal on Computing, INFORMS, vol. 21(2), pages 333-345, May.
    12. Rahmaniani, Ragheb & Crainic, Teodor Gabriel & Gendreau, Michel & Rei, Walter, 2017. "The Benders decomposition algorithm: A literature review," European Journal of Operational Research, Elsevier, vol. 259(3), pages 801-817.
    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. Morgan Swink & Kejia Hu & Xiande Zhao, 2022. "Analytics applications, limitations, and opportunities in restaurant supply chains," Production and Operations Management, Production and Operations Management Society, vol. 31(10), pages 3710-3726, October.
    2. Li, Siqiao & Zhu, Xiaoning & Shang, Pan & Li, Tianqi & Liu, Wenqian, 2023. "Optimizing a shared freight and passenger high-speed railway system: A multi-commodity flow formulation with Benders decomposition solution approach," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 1-31.
    3. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2021. "A time-expanded network reduction matheuristic for the logistics service network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    4. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2022. "Meta partial benders decomposition for the logistics service network design problem," European Journal of Operational Research, Elsevier, vol. 300(2), pages 473-489.
    5. Xudong Diao & Ai Gao & Xin Jin & Hui Chen, 2022. "A Layer-Based Relaxation Approach for Service Network Design," Sustainability, MDPI, vol. 14(20), pages 1-13, October.
    6. Reddy, K. Nageswara & Kumar, Akhilesh & Choudhary, Alok & Cheng, T. C. Edwin, 2022. "Multi-period green reverse logistics network design: An improved Benders-decomposition-based heuristic approach," European Journal of Operational Research, Elsevier, vol. 303(2), pages 735-752.
    7. Orenstein, Ido & Raviv, Tal, 2022. "Parcel delivery using the hyperconnected service network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    8. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    9. Kumar, Pramesh & Khani, Alireza, 2022. "Planning of integrated mobility-on-demand and urban transit networks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 499-521.
    10. Liu, Chuanju & Zhang, Junlong & Lin, Shaochong & Shen, Zuo-Jun Max, 2023. "Service network design with consistent multiple trips," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    11. Li, Xiangyong & Wei, Kai & Guo, Zhaoxia & Wang, Wei & Aneja, Y.P., 2021. "An exact approach for the service network design problem with heterogeneous resource constraints," Omega, Elsevier, vol. 102(C).

    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. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2022. "Meta partial benders decomposition for the logistics service network design problem," European Journal of Operational Research, Elsevier, vol. 300(2), pages 473-489.
    2. Camilo Ortiz-Astorquiza & Ivan Contreras & Gilbert Laporte, 2019. "An Exact Algorithm for Multilevel Uncapacitated Facility Location," Transportation Science, INFORMS, vol. 53(4), pages 1085-1106, July.
    3. Rahmaniani, Ragheb & Crainic, Teodor Gabriel & Gendreau, Michel & Rei, Walter, 2017. "The Benders decomposition algorithm: A literature review," European Journal of Operational Research, Elsevier, vol. 259(3), pages 801-817.
    4. Kiho Seo & Seulgi Joung & Chungmok Lee & Sungsoo Park, 2022. "A Closest Benders Cut Selection Scheme for Accelerating the Benders Decomposition Algorithm," INFORMS Journal on Computing, INFORMS, vol. 34(5), pages 2804-2827, September.
    5. Ragheb Rahmaniani & Shabbir Ahmed & Teodor Gabriel Crainic & Michel Gendreau & Walter Rei, 2020. "The Benders Dual Decomposition Method," Operations Research, INFORMS, vol. 68(3), pages 878-895, May.
    6. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2021. "A time-expanded network reduction matheuristic for the logistics service network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    7. Lixin Tang & Wei Jiang & Georgios Saharidis, 2013. "An improved Benders decomposition algorithm for the logistics facility location problem with capacity expansions," Annals of Operations Research, Springer, vol. 210(1), pages 165-190, November.
    8. Neamatian Monemi, Rahimeh & Gelareh, Shahin & Nagih, Anass & Maculan, Nelson & Danach, Kassem, 2021. "Multi-period hub location problem with serial demands: A case study of humanitarian aids distribution in Lebanon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    9. Nieto-Isaza, Santiago & Fontaine, Pirmin & Minner, Stefan, 2022. "The value of stochastic crowd resources and strategic location of mini-depots for last-mile delivery: A Benders decomposition approach," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 62-79.
    10. Zhang, X. & Liu, X., 2022. "A two-stage robust model for express service network design with surging demand," European Journal of Operational Research, Elsevier, vol. 299(1), pages 154-167.
    11. 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.
    12. Elisangela Martins de Sá & Ivan Contreras & Jean-François Cordeau & Ricardo Saraiva de Camargo & Gilberto de Miranda, 2015. "The Hub Line Location Problem," Transportation Science, INFORMS, vol. 49(3), pages 500-518, August.
    13. Maher, Stephen J., 2021. "Implementing the branch-and-cut approach for a general purpose Benders’ decomposition framework," European Journal of Operational Research, Elsevier, vol. 290(2), pages 479-498.
    14. Daniel Baena & Jordi Castro & Antonio Frangioni, 2020. "Stabilized Benders Methods for Large-Scale Combinatorial Optimization, with Application to Data Privacy," Management Science, INFORMS, vol. 66(7), pages 3051-3068, July.
    15. Dursun, Pınar & Taşkın, Z. Caner & Altınel, İ. Kuban, 2019. "The determination of optimal treatment plans for Volumetric Modulated Arc Therapy (VMAT)," European Journal of Operational Research, Elsevier, vol. 272(1), pages 372-388.
    16. Michels, Adalberto Sato & Lopes, Thiago Cantos & Magatão, Leandro, 2020. "An exact method with decomposition techniques and combinatorial Benders’ cuts for the type-2 multi-manned assembly line balancing problem," Operations Research Perspectives, Elsevier, vol. 7(C).
    17. M. Jenabi & S. Fatemi Ghomi & S. Torabi & S. Hosseinian, 2015. "Acceleration strategies of Benders decomposition for the security constraints power system expansion planning," Annals of Operations Research, Springer, vol. 235(1), pages 337-369, December.
    18. Rodríguez, Jesús A. & Anjos, Miguel F. & Côté, Pascal & Desaulniers, Guy, 2021. "Accelerating Benders decomposition for short-term hydropower maintenance scheduling," European Journal of Operational Research, Elsevier, vol. 289(1), pages 240-253.
    19. Wakui, Tetsuya & Hashiguchi, Moe & Yokoyama, Ryohei, 2021. "Structural design of distributed energy networks by a hierarchical combination of variable- and constraint-based decomposition methods," Energy, Elsevier, vol. 224(C).
    20. Xiaozheng He & Hong Zheng & Srinivas Peeta & Yongfu Li, 2018. "Network Design Model to Integrate Shelter Assignment with Contraflow Operations in Emergency Evacuation Planning," Networks and Spatial Economics, Springer, vol. 18(4), pages 1027-1050, December.

    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:ejores:v:286:y:2020:i:2:p:523-537. 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/locate/eor .

    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.