IDEAS home Printed from https://ideas.repec.org/a/inm/orijoc/v34y2022i1p370-384.html
   My bibliography  Save this article

Combinatorial Heuristics for Inventory Routing Problems

Author

Listed:
  • Ziye Tang

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Yang Jiao

    (Boeing Research & Technology, Tukwila, Washington 98108)

  • R. Ravi

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

We consider the deterministic inventory routing problem over a discrete finite time horizon. Given clients on a metric, each with daily demands that must be delivered from a depot and holding costs over the planning horizon, an optimal solution selects a set of daily tours through a subset of clients to deliver all demands before they are due and minimizes the total holding and tour routing costs over the horizon. In the capacitated case, a limited number of vehicles are available, where each vehicle makes at most one trip per day. Each trip from the depot is allowed to carry a limited amount of supply to deliver. We develop fast heuristics for both cases by solving a family of prize-collecting Steiner tree instances. Computational experiments show our heuristics can find near-optimal solutions for both cases and substantially reduce the runtime compared with a pure mixed integer programming formulation approach.

Suggested Citation

  • Ziye Tang & Yang Jiao & R. Ravi, 2022. "Combinatorial Heuristics for Inventory Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 34(1), pages 370-384, January.
    • Handle: RePEc:inm:orijoc:v:34:y:2022:i:1:p:370-384
    DOI: 10.1287/ijoc.2021.1064
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/ijoc.2021.1064
    Download Restriction: no
    File URL: https://libkey.io/10.1287/ijoc.2021.1064?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
    ---><---

    References listed on IDEAS

    as
    1. Claudia Archetti & Natashia Boland & Grazia Speranza, 2017. "A Matheuristic for the Multivehicle Inventory Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 29(3), pages 377-387, August.
    2. Guy Desaulniers & Jørgen G. Rakke & Leandro C. Coelho, 2016. "A Branch-Price-and-Cut Algorithm for the Inventory-Routing Problem," Transportation Science, INFORMS, vol. 50(3), pages 1060-1076, August.
    3. Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
    4. Markus Leitner & Ivana Ljubić & Martin Luipersbeck & Markus Sinnl, 2018. "A Dual Ascent-Based Branch-and-Bound Framework for the Prize-Collecting Steiner Tree and Related Problems," INFORMS Journal on Computing, INFORMS, vol. 30(2), pages 402-420, May.
    5. 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.
    6. Pasquale Avella & Maurizio Boccia & Laurence A. Wolsey, 2018. "Single-period cutting planes for inventory routing problems," LIDAM Reprints CORE 3009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. Philip Kaminsky & David Simchi-Levi, 1998. "Probabilistic Analysis and Practical Algorithms for the Flow Shop Weighted Completion Time Problem," Operations Research, INFORMS, vol. 46(6), pages 872-882, December.
    8. Pasquale Avella & Maurizio Boccia & Laurence A. Wolsey, 2018. "Single-Period Cutting Planes for Inventory Routing Problems," Transportation Science, INFORMS, vol. 52(3), pages 497-508, June.
    9. Retsef Levi & Robin O. Roundy & David B. Shmoys, 2006. "Primal-Dual Algorithms for Deterministic Inventory Problems," Mathematics of Operations Research, INFORMS, vol. 31(2), pages 267-284, May.
    10. 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.
    11. Max Shen, Zuo-Jun & Qi, Lian, 2007. "Incorporating inventory and routing costs in strategic location models," European Journal of Operational Research, Elsevier, vol. 179(2), pages 372-389, June.
    12. Lawrence D. Burns & Randolph W. Hall & Dennis E. Blumenfeld & Carlos F. Daganzo, 1985. "Distribution Strategies that Minimize Transportation and Inventory Costs," Operations Research, INFORMS, vol. 33(3), pages 469-490, June.
    13. Aksen, Deniz & Kaya, Onur & Sibel Salman, F. & Tüncel, Özge, 2014. "An adaptive large neighborhood search algorithm for a selective and periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 239(2), pages 413-426.
    14. Yossiri Adulyasak & Jean-François Cordeau & Raf Jans, 2014. "Formulations and Branch-and-Cut Algorithms for Multivehicle Production and Inventory Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 103-120, February.
    15. Claudia Archetti & Luca Bertazzi & Alain Hertz & M. Grazia Speranza, 2012. "A Hybrid Heuristic for an Inventory Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 24(1), pages 101-116, February.
    16. Yu, Yugang & Chen, Haoxun & Chu, Feng, 2008. "A new model and hybrid approach for large scale inventory routing problems," European Journal of Operational Research, Elsevier, vol. 189(3), pages 1022-1040, September.
    17. Lap Mui Ann Chan & Awi Federgruen & David Simchi-Levi, 1998. "Probabilistic Analyses and Practical Algorithms for Inventory-Routing Models," Operations Research, INFORMS, vol. 46(1), pages 96-106, 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. Vahdani, Behnam & Mohammadi, Mehrdad & Thevenin, Simon & Gendreau, Michel & Dolgui, Alexandre & Meyer, Patrick, 2023. "Fair-split distribution of multi-dose vaccines with prioritized age groups and dynamic demand: The case study of COVID-19," European Journal of Operational Research, Elsevier, vol. 310(3), pages 1249-1272.

    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. Diabat, Ali & Bianchessi, Nicola & Archetti, Claudia, 2024. "On the zero-inventory-ordering policy in the inventory routing problem," European Journal of Operational Research, Elsevier, vol. 312(3), pages 1024-1038.
    2. Manousakis, Eleftherios & Repoussis, Panagiotis & Zachariadis, Emmanouil & Tarantilis, Christos, 2021. "Improved branch-and-cut for the Inventory Routing Problem based on a two-commodity flow formulation," European Journal of Operational Research, Elsevier, vol. 290(3), pages 870-885.
    3. Skålnes, Jørgen & Andersson, Henrik & Desaulniers, Guy & Stålhane, Magnus, 2022. "An improved formulation for the inventory routing problem with time-varying demands," European Journal of Operational Research, Elsevier, vol. 302(3), pages 1189-1201.
    4. Archetti, Claudia & Ljubić, Ivana, 2022. "Comparison of formulations for the Inventory Routing Problem," European Journal of Operational Research, Elsevier, vol. 303(3), pages 997-1008.
    5. Zhenzhen Zhang & Zhixing Luo & Roberto Baldacci & Andrew Lim, 2021. "A Benders Decomposition Approach for the Multivehicle Production Routing Problem with Order-up-to-Level Policy," Transportation Science, INFORMS, vol. 55(1), pages 160-178, 1-2.
    6. Zhouxing Su & Zhipeng Lü & Zhuo Wang & Yanmin Qi & Una Benlic, 2020. "A Matheuristic Algorithm for the Inventory Routing Problem," Transportation Science, INFORMS, vol. 54(2), pages 330-354, March.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. Jia, Menglei & Chen, Feng, 2023. "Upward scalable vehicle routing problem of automobile inbound logistics with pickup flexibility," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    13. Alvarez, Aldair & Cordeau, Jean-François & Jans, Raf & Munari, Pedro & Morabito, Reinaldo, 2020. "Formulations, branch-and-cut and a hybrid heuristic algorithm for an inventory routing problem with perishable products," European Journal of Operational Research, Elsevier, vol. 283(2), pages 511-529.
    14. 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.
    15. Oğuz Solyalı & Jean-François Cordeau & Gilbert Laporte, 2012. "Robust Inventory Routing Under Demand Uncertainty," Transportation Science, INFORMS, vol. 46(3), pages 327-340, August.
    16. 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.
    17. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2002. "The Stochastic Inventory Routing Problem with Direct Deliveries," Transportation Science, INFORMS, vol. 36(1), pages 94-118, February.
    18. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    19. Claudia Archetti & Natashia Boland & Grazia Speranza, 2017. "A Matheuristic for the Multivehicle Inventory Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 29(3), pages 377-387, August.
    20. Çelik, Melih & Archetti, Claudia & Süral, Haldun, 2022. "Inventory routing in a warehouse: The storage replenishment routing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1117-1132.

    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:inm:orijoc:v:34:y:2022:i:1:p:370-384. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.