IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v92y2020ics0305048319307352.html
   My bibliography  Save this article

A continuous-time supply-driven inventory-constrained routing problem

Author

Listed:
  • Fokkema, Jan Eise
  • Land, Martin J.
  • Coelho, Leandro C.
  • Wortmann, Hans
  • Huitema, George B.

Abstract

We address an inventory routing problem (IRP) in which routing and inventory decisions are dictated by supply rather than demand. Moreover, inventory is held in containers that act as both a storage container and a movable transport unit. This problem emanates from logistics related to biogas transportation in which biogas is transported in containers from many suppliers to a single facility. We present a novel and compact formulation for the supply-driven IRP which addresses the routing decisions in continuous-time in which inventory levels within the containers are continuous. Valid inequalities are included and realistic instances are solved to optimality. For all experiments, we found that the total transportation time is minimized when the storage capacity at each supplier is larger than or equal to the vehicle capacity. These routes are characterized by tours in which mostly single suppliers are visited. In 95% of the instances, the average content level of the exchanged containers exceeded 99.6%.

Suggested Citation

  • Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jomega:v:92:y:2020:i:c:s0305048319307352
    DOI: 10.1016/j.omega.2019.102151
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048319307352
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2019.102151?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. Ann Melissa Campbell & Martin W. P. Savelsbergh, 2004. "A Decomposition Approach for the Inventory-Routing Problem," Transportation Science, INFORMS, vol. 38(4), pages 488-502, November.
    2. 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.
    3. Gustavo Souto dos Santos Diz & Fabrício Oliveira & Silvio Hamacher, 2017. "Improving maritime inventory routing: application to a Brazilian petroleum case," Maritime Policy & Management, Taylor & Francis Journals, vol. 44(1), pages 42-61, January.
    4. Srivastava, Samir K., 2008. "Network design for reverse logistics," Omega, Elsevier, vol. 36(4), pages 535-548, August.
    5. Zhao, Qiu-Hong & Chen, Shuang & Zang, Cun-Xun, 2008. "Model and algorithm for inventory/routing decision in a three-echelon logistics system," European Journal of Operational Research, Elsevier, vol. 191(3), pages 623-635, December.
    6. Iassinovskaia, Galina & Limbourg, Sabine & Riane, Fouad, 2017. "The inventory-routing problem of returnable transport items with time windows and simultaneous pickup and delivery in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 570-582.
    7. Raa, Birger & Aghezzaf, El-Houssaine, 2008. "Designing distribution patterns for long-term inventory routing with constant demand rates," International Journal of Production Economics, Elsevier, vol. 112(1), pages 255-263, March.
    8. Archetti, Claudia & Coelho, Leandro C. & Grazia Speranza, M., 2019. "An exact algorithm for the inventory routing problem with logistic ratio," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 96-107.
    9. Raa, Birger & Aghezzaf, El-Houssaine, 2009. "A practical solution approach for the cyclic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 192(2), pages 429-441, January.
    10. Vidović, Milorad & Popović, Dražen & Ratković, Branislava, 2014. "Mixed integer and heuristics model for the inventory routing problem in fuel delivery," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 593-604.
    11. El-Houssaine Aghezzaf & Yiqing Zhong & Birger Raa & Manel Mateo, 2012. "Analysis of the single-vehicle cyclic inventory routing problem," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(11), pages 2040-2049.
    12. Boudia, M. & Prins, C., 2009. "A memetic algorithm with dynamic population management for an integrated production-distribution problem," European Journal of Operational Research, Elsevier, vol. 195(3), pages 703-715, June.
    13. T. William Chien & Anantaram Balakrishnan & Richard T. Wong, 1989. "An Integrated Inventory Allocation and Vehicle Routing Problem," Transportation Science, INFORMS, vol. 23(2), pages 67-76, May.
    14. Natashia Boland & Mike Hewitt & Luke Marshall & Martin Savelsbergh, 2019. "The price of discretizing time: a study in service network design," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(2), pages 195-216, June.
    15. Al-Khayyal, Faiz & Hwang, Seung-June, 2007. "Inventory constrained maritime routing and scheduling for multi-commodity liquid bulk, Part I: Applications and model," European Journal of Operational Research, Elsevier, vol. 176(1), pages 106-130, January.
    16. Li, Kunpeng & Chen, Bin & Sivakumar, Appa Iyer & Wu, Yong, 2014. "An inventory–routing problem with the objective of travel time minimization," European Journal of Operational Research, Elsevier, vol. 236(3), pages 936-945.
    17. Persson, Jan A. & Gothe-Lundgren, Maud, 2005. "Shipment planning at oil refineries using column generation and valid inequalities," European Journal of Operational Research, Elsevier, vol. 163(3), pages 631-652, June.
    18. Claudia Archetti & Luca Bertazzi & Gilbert Laporte & Maria Grazia Speranza, 2007. "A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem," Transportation Science, INFORMS, vol. 41(3), pages 382-391, August.
    19. 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.
    20. Luca Bertazzi & Giuseppe Paletta & M. Grazia Speranza, 2002. "Deterministic Order-Up-To Level Policies in an Inventory Routing Problem," Transportation Science, INFORMS, vol. 36(1), pages 119-132, February.
    21. Bailing Liu & Hui Chen & Yanhui Li & Xiang Liu, 2015. "A Pseudo-Parallel Genetic Algorithm Integrating Simulated Annealing for Stochastic Location-Inventory-Routing Problem with Consideration of Returns in E-Commerce," Discrete Dynamics in Nature and Society, Hindawi, vol. 2015, pages 1-15, March.
    22. Hein, Fanny & Almeder, Christian, 2016. "Quantitative insights into the integrated supply vehicle routing and production planning problem," International Journal of Production Economics, Elsevier, vol. 177(C), pages 66-76.
    23. Rahimi, Mohammad & Baboli, Armand & Rekik, Yacine, 2017. "Multi-objective inventory routing problem: A stochastic model to consider profit, service level and green criteria," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 59-83.
    24. Ali Ekici & Okan Örsan Özener & Gültekin Kuyzu, 2015. "Cyclic Delivery Schedules for an Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 817-829, November.
    25. S. Viswanathan & Kamlesh Mathur, 1997. "Integrating Routing and Inventory Decisions in One-Warehouse Multiretailer Multiproduct Distribution Systems," Management Science, INFORMS, vol. 43(3), pages 294-312, March.
    26. Claudia Archetti & Guy Desaulniers & M. Grazia Speranza, 2017. "Minimizing the logistic ratio in the inventory routing problem," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 6(4), pages 289-306, December.
    27. AGHEZZAF, El-Houssaine & RAA, Birger & VAN LANDEGHEM, Hendrik, 2006. "Modeling inventory routing problems in supply chains of high consumption products," LIDAM Reprints CORE 1786, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    28. Guillermo Gallego & David Simchi-Levi, 1990. "On the Effectiveness of Direct Shipping Strategy for the One-Warehouse Multi-Retailer R-Systems," Management Science, INFORMS, vol. 36(2), pages 240-243, February.
    29. 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.
    30. Mohammad Rahimi & Armand Baboli & Yacine Rekik, 2017. "Multi-objective inventory routing problem : A stochastic model to consider profit, service level and green criteria," Post-Print hal-02311993, HAL.
    31. Gopalakrishnan Easwaran & Halit Üster, 2009. "Tabu Search and Benders Decomposition Approaches for a Capacitated Closed-Loop Supply Chain Network Design Problem," Transportation Science, INFORMS, vol. 43(3), pages 301-320, August.
    32. S. Anily & A. Federgruen, 1990. "One Warehouse Multiple Retailer Systems with Vehicle Routing Costs," Management Science, INFORMS, vol. 36(1), pages 92-114, January.
    33. Marielle Christiansen, 1999. "Decomposition of a Combined Inventory and Time Constrained Ship Routing Problem," Transportation Science, INFORMS, vol. 33(1), pages 3-16, February.
    34. Masoud Chitsaz & Jean-François Cordeau & Raf Jans, 2019. "A Unified Decomposition Matheuristic for Assembly, Production, and Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 134-152, February.
    35. Vansteenwegen, Pieter & Mateo, Manuel, 2014. "An iterated local search algorithm for the single-vehicle cyclic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 237(3), pages 802-813.
    36. Avella, Pasquale & Boccia, Maurizio & Sforza, Antonio, 2004. "Solving a fuel delivery problem by heuristic and exact approaches," European Journal of Operational Research, Elsevier, vol. 152(1), pages 170-179, January.
    37. Jonathan F. Bard & Liu Huang & Patrick Jaillet & Moshe Dror, 1998. "A Decomposition Approach to the Inventory Routing Problem with Satellite Facilities," Transportation Science, INFORMS, vol. 32(2), pages 189-203, May.
    38. Aghezzaf, El-Houssaine & Raa, Birger & Van Landeghem, Hendrik, 2006. "Modeling inventory routing problems in supply chains of high consumption products," European Journal of Operational Research, Elsevier, vol. 169(3), pages 1048-1063, March.
    39. Raa, Birger, 2015. "Fleet optimization for cyclic inventory routing problems," International Journal of Production Economics, Elsevier, vol. 160(C), pages 172-181.
    40. Walter J. Bell & Louis M. Dalberto & Marshall L. Fisher & Arnold J. Greenfield & R. Jaikumar & Pradeep Kedia & Robert G. Mack & Paul J. Prutzman, 1983. "Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer," Interfaces, INFORMS, vol. 13(6), pages 4-23, December.
    41. Awi Federgruen & Paul Zipkin, 1984. "A Combined Vehicle Routing and Inventory Allocation Problem," Operations Research, INFORMS, vol. 32(5), pages 1019-1037, October.
    42. Lahyani, Rahma & Coelho, Leandro C. & Khemakhem, Mahdi & Laporte, Gilbert & Semet, Frédéric, 2015. "A multi-compartment vehicle routing problem arising in the collection of olive oil in Tunisia," Omega, Elsevier, vol. 51(C), pages 1-10.
    43. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    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. Alvarez, Aldair & Cordeau, Jean-François & Jans, Raf & Munari, Pedro & Morabito, Reinaldo, 2021. "Inventory routing under stochastic supply and demand," Omega, Elsevier, vol. 102(C).
    2. 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).
    3. Lara, Cristiana L. & Koenemann, Jochen & Nie, Yisu & de Souza, Cid C., 2023. "Scalable timing-aware network design via lagrangian decomposition," European Journal of Operational Research, Elsevier, vol. 309(1), pages 152-169.
    4. Wang, Qingyi & Nie, Xiaofeng, 2023. "A location-inventory-routing model for distributing emergency supplies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    5. Cárdenas-Barrón, Leopoldo E. & Melo, Rafael A., 2021. "A fast and effective MIP-based heuristic for a selective and periodic inventory routing problem in reverse logistics," Omega, Elsevier, vol. 103(C).
    6. Agra, Agostinho & Christiansen, Marielle & Wolsey, Laurence, 2022. "Improved models for a single vehicle continuous-time inventory routing problem with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 297(1), pages 164-179.
    7. Mahmutoğulları, Özlem & Yaman, Hande, 2023. "A Branch-and-Cut Algorithm for the Inventory Routing Problem with Product Substitution," Omega, Elsevier, vol. 115(C).
    8. Alarcon Ortega, Emilio J. & Schilde, Michael & Doerner, Karl F., 2020. "Matheuristic search techniques for the consistent inventory routing problem with time windows and split deliveries," Operations Research Perspectives, Elsevier, vol. 7(C).
    9. Coelho, Leandro Callegari & De Maio, Annarita & Laganà, Demetrio, 2020. "A variable MIP neighborhood descent for the multi-attribute inventory routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(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. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    2. 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.
    3. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    4. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    5. Cárdenas-Barrón, Leopoldo Eduardo & González-Velarde, José Luis & Treviño-Garza, Gerardo & Garza-Nuñez, Dagoberto, 2019. "Heuristic algorithm based on reduce and optimize approach for a selective and periodic inventory routing problem in a waste vegetable oil collection environment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 44-59.
    6. Agra, Agostinho & Christiansen, Marielle & Wolsey, Laurence, 2022. "Improved models for a single vehicle continuous-time inventory routing problem with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 297(1), pages 164-179.
    7. Jafarian, Ahmad & Asgari, Nasrin & Mohri, Seyed Sina & Fatemi-Sadr, Elham & Farahani, Reza Zanjirani, 2019. "The inventory-routing problem subject to vehicle failure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 254-294.
    8. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    9. Emre Çankaya & Ali Ekici & Okan Örsan Özener, 2019. "Humanitarian relief supplies distribution: an application of inventory routing problem," Annals of Operations Research, Springer, vol. 283(1), pages 119-141, December.
    10. Raa, Birger & Aouam, Tarik, 2021. "Multi-vehicle stochastic cyclic inventory routing with guaranteed replenishments," International Journal of Production Economics, Elsevier, vol. 234(C).
    11. Ahmed Kheiri, 2020. "Heuristic Sequence Selection for Inventory Routing Problem," Transportation Science, INFORMS, vol. 54(2), pages 302-312, March.
    12. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    13. Bertazzi, Luca & Laganà, Demetrio & Ohlmann, Jeffrey W. & Paradiso, Rosario, 2020. "An exact approach for cyclic inbound inventory routing in a level production system," European Journal of Operational Research, Elsevier, vol. 283(3), pages 915-928.
    14. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
    15. Ali Ekici & Okan Örsan Özener & Gültekin Kuyzu, 2015. "Cyclic Delivery Schedules for an Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 817-829, November.
    16. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2004. "Dynamic Programming Approximations for a Stochastic Inventory Routing Problem," Transportation Science, INFORMS, vol. 38(1), pages 42-70, February.
    17. Liu, Ming & Liu, Xin & Chu, Feng & Zheng, Feifeng & Chu, Chengbin, 2019. "Distributionally robust inventory routing problem to maximize the service level under limited budget," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 190-211.
    18. Raa, Birger & Aouam, Tarik, 2023. "A shortfall modelling-based solution approach for stochastic cyclic inventory routing," European Journal of Operational Research, Elsevier, vol. 305(2), pages 674-684.
    19. Bertazzi, Luca & Chua, Geoffrey A. & Laganà, Demetrio & Paradiso, Rosario, 2022. "Analysis of effective sets of routes for the split-delivery periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 298(2), pages 463-477.
    20. Oğuz Solyalı & Haldun Süral, 2011. "A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem," Transportation Science, INFORMS, vol. 45(3), pages 335-345, 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:eee:jomega:v:92:y:2020:i:c:s0305048319307352. 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/wps/find/journaldescription.cws_home/375/description#description .

    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.