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Solving Logistical Challenges in Raw Material Reception: An Optimization and Heuristic Approach Combining Revenue Management Principles with Scheduling Techniques

Author

Listed:
  • Reinaldo Gomes

    (INESC TEC—Instituto de Engenharia de Sistemas e Computadores, Tecnologia e Ciência, Rua Dr. Roberto Frias, 4200-465 Porto, Portugal)

  • Ruxanda Godina Silva

    (Departmento de Economia, Gestao, Engenharia Industrial e Turismo (DEGEIT), University of Aveiro, 3810-193 Aveiro, Portugal)

  • Pedro Amorim

    (Faculdade de Engenharia, Universidade do Porto, Rua Dr. Roberto Frias, 4200-465 Porto, Portugal)

Abstract

The cost of transportation of raw materials is a significant part of the procurement costs in the forestry industry. As a result, routing and scheduling techniques were introduced to the transportation of raw materials from extraction sites to transformation mills. However, little to no attention has been given to date to the material reception process at the mill. Another factor that motivated this study was the formation of large waiting queues at the mill gates and docks. Queues increase the reception time and associated costs. This work presents the development of a scheduling and reception system for deliveries at a mill. The scheduling system is based on Trucking Appointment Systems (TAS), commonly used at maritime ports, and on revenue management concepts. The developed system allocates each delivery to a timeslot and to an unloading dock using revenue management concepts. Each delivery is segmented according to its priority. Higher-segment deliveries have priority when there are multiple candidates to be allocated for one timeslot. The developed scheduling system was tested on a set of 120 daily deliveries at a Portuguese paper pulp mill and led to a reduction of 66% in the daily reception cost when compared to a first-in, first-out (FIFO) allocation approach. The average waiting time was also significantly reduced, especially in the case of high-priority trucks.

Suggested Citation

  • Reinaldo Gomes & Ruxanda Godina Silva & Pedro Amorim, 2025. "Solving Logistical Challenges in Raw Material Reception: An Optimization and Heuristic Approach Combining Revenue Management Principles with Scheduling Techniques," Mathematics, MDPI, vol. 13(6), pages 1-21, March.
    • Handle: RePEc:gam:jmathe:v:13:y:2025:i:6:p:919-:d:1609290
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    References listed on IDEAS

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    3. Rainer Quante & Herbert Meyr & Moritz Fleischmann, 2009. "Revenue management and demand fulfillment: matching applications, models and software," Springer Books, in: Herbert Meyr & Hans-Otto Günther (ed.), Supply Chain Planning, pages 57-88, Springer.
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