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Marine inventory routing: shipments planning

Author

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  • D Ronen

    (University of Missouri-St Louis)

Abstract

This paper addresses a shipments-planning problem faced by producers of large volume liquid bulk products. Producing origins with limited tank storage capacity supply multiple products by ships (or barges) to consuming destinations that also have limited storage capacity. Timing, origin, destination, and product quantities of shipments have to be determined in a manner that minimizes costs and does not violate storage capacity constraints at both ends (neither stopping production at the origins, nor running out of stock at the destinations). A mixed integer-programming model is used to derive cost effective solutions within a few minutes. A cost-based heuristic algorithm is used to assure that acceptable solutions are obtained quickly.

Suggested Citation

  • D Ronen, 2002. "Marine inventory routing: shipments planning," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(1), pages 108-114, January.
    • Handle: RePEc:pal:jorsoc:v:53:y:2002:i:1:d:10.1057_palgrave.jors.2601264
    DOI: 10.1057/palgrave.jors.2601264
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    Citations

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    Cited by:

    1. Gustavo Diz & Luiz Felipe Scavarda & Roger Rocha & Silvio Hamacher, 2014. "Decision Support System for PETROBRAS Ship Scheduling," Interfaces, INFORMS, vol. 44(6), pages 555-566, December.
    2. Agostinho Agra & Marielle Christiansen & Alexandrino Delgado, 2013. "Mixed Integer Formulations for a Short Sea Fuel Oil Distribution Problem," Transportation Science, INFORMS, vol. 47(1), pages 108-124, February.
    3. Jørgen Glomvik Rakke & Henrik Andersson & Marielle Christiansen & Guy Desaulniers, 2015. "A New Formulation Based on Customer Delivery Patterns for a Maritime Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(2), pages 384-401, May.
    4. Stéphane Dauzère-Pérès & Atle Nordli & Asmund Olstad & Kjetil Haugen & Ulrich Koester & Myrstad Per Olav & Geir Teistklub & Alf Reistad, 2007. "Omya Hustadmarmor Optimizes Its Supply Chain for Delivering Calcium Carbonate Slurry to European Paper Manufacturers," Interfaces, INFORMS, vol. 37(1), pages 39-51, February.
    5. Dimitri J. Papageorgiou & Ahmet B. Keha & George L. Nemhauser & Joel Sokol, 2014. "Two-Stage Decomposition Algorithms for Single Product Maritime Inventory Routing," INFORMS Journal on Computing, INFORMS, vol. 26(4), pages 825-847, November.
    6. Bilgen, Bilge & Ozkarahan, Irem, 2007. "A mixed-integer linear programming model for bulk grain blending and shipping," International Journal of Production Economics, Elsevier, vol. 107(2), pages 555-571, June.
    7. Kirschstein, Thomas, 2018. "Rail transportation planning in the chemical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 112(C), pages 142-160.
    8. Mutlu, Fatih & Msakni, Mohamed K. & Yildiz, Hakan & Sönmez, Erkut & Pokharel, Shaligram, 2016. "A comprehensive annual delivery program for upstream liquefied natural gas supply chain," European Journal of Operational Research, Elsevier, vol. 250(1), pages 120-130.
    9. Hemmati, Ahmad & Hvattum, Lars Magnus & Christiansen, Marielle & Laporte, Gilbert, 2016. "An iterative two-phase hybrid matheuristic for a multi-product short sea inventory-routing problem," European Journal of Operational Research, Elsevier, vol. 252(3), pages 775-788.
    10. E-H Aghezzaf, 2008. "Robust distribution planning for supplier-managed inventory agreements when demand rates and travel times are stationary," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(8), pages 1055-1065, August.
    11. N H Moin & S Salhi, 2007. "Inventory routing problems: a logistical overview," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1185-1194, September.
    12. 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.
    13. 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.
    14. Agra, Agostinho & Christiansen, Marielle & Delgado, Alexandrino & Simonetti, Luidi, 2014. "Hybrid heuristics for a short sea inventory routing problem," European Journal of Operational Research, Elsevier, vol. 236(3), pages 924-935.
    15. Kevin C. Furman & Jin-Hwa Song & Gary R. Kocis & Michael K. McDonald & Philip H. Warrick, 2011. "Feedstock Routing in the ExxonMobil Downstream Sector," Interfaces, INFORMS, vol. 41(2), pages 149-163, April.
    16. Yazdani, Majid & Aouam, Tarik, 2023. "Shipment planning and safety stock placement in maritime supply chains with stochastic demand and transportation times," International Journal of Production Economics, Elsevier, vol. 263(C).
    17. Jørgen Bjaarstad Nikolaisen & Sofie Smith Vågen & Peter Schütz, 2023. "Solving a maritime inventory routing problem under uncertainty using optimization and simulation," Computational Management Science, Springer, vol. 20(1), pages 1-27, December.
    18. 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.
    19. Papageorgiou, Dimitri J. & Nemhauser, George L. & Sokol, Joel & Cheon, Myun-Seok & Keha, Ahmet B., 2014. "MIRPLib – A library of maritime inventory routing problem instances: Survey, core model, and benchmark results," European Journal of Operational Research, Elsevier, vol. 235(2), pages 350-366.
    20. de Mare, R. & Spliet, R. & Huisman, D., 2010. "A Branch-and-Price Approach for a Ship Routing Problem with Multiple Products and Inventory Constraints," Econometric Institute Research Papers EI 2010-05, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    21. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    22. Christiansen, Marielle & Fagerholt, Kjetil & Flatberg, Truls & Haugen, Øyvind & Kloster, Oddvar & Lund, Erik H., 2011. "Maritime inventory routing with multiple products: A case study from the cement industry," European Journal of Operational Research, Elsevier, vol. 208(1), pages 86-94, January.
    23. G Brønmo & M Christiansen & B Nygreen, 2007. "Ship routing and scheduling with flexible cargo sizes," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1167-1177, September.
    24. 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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