IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v57y2006i8d10.1057_palgrave.jors.2602057.html
   My bibliography  Save this article

A combined terminal location and ship routing problem

Author

Listed:
  • H Gunnarsson

    (Linköping Institute of Technology)

  • M Rönnqvist

    (Linköping Institute of Technology)

  • D Carlsson

    (Södra Cell AB)

Abstract

In this paper, we consider a combined terminal location and ship routing problem at Södra Cell AB. The purpose is to supply the customers' annual demand for pulp products while minimizing the distribution costs. Customers are supplied with various pulp products from pulp mills in Scandinavia by ships, trains, or lorries. The ship routes go from the pulp mills to terminals in Europe. From each terminal, the products are transported to customers by lorry, train, or barge. Some customers can be supplied directly from the pulp mills by trains or lorries. We have developed a mathematical model to select which terminals to use and, at the same time, determine the shipping routes. The mixed integer programming model was solved directly using a commercial solver. When the number of routes generated is large, the time required to obtain an optimal solution is too long. Hence, we have developed heuristics in order to obtain an acceptable solution in reasonable time. In addition to the basic case, five different scenarios were tested. Our heuristics provide solutions that are within 0.12% of the optimal ones.

Suggested Citation

  • H Gunnarsson & M Rönnqvist & D Carlsson, 2006. "A combined terminal location and ship routing problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(8), pages 928-938, August.
    • Handle: RePEc:pal:jorsoc:v:57:y:2006:i:8:d:10.1057_palgrave.jors.2602057
    DOI: 10.1057/palgrave.jors.2602057
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2602057
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2602057?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. Marielle Christiansen & Bjorn Nygreen, 1998. "A method for solving ship routing problemswith inventory constraints," Annals of Operations Research, Springer, vol. 81(0), pages 357-378, June.
    2. Crainic, Teodor G. & Rousseau, Jean-Marc, 1986. "Multicommodity, multimode freight transportation: A general modeling and algorithmic framework for the service network design problem," Transportation Research Part B: Methodological, Elsevier, vol. 20(3), pages 225-242, June.
    3. Marielle Christiansen & Bjørn Nygreen, 1998. "Modelling path flows for a combined ship routingand inventory management problem," Annals of Operations Research, Springer, vol. 82(0), pages 391-413, August.
    4. E. Rod Butchers & Paul R. Day & Andrew P. Goldie & Stephen Miller & Jeff A. Meyer & David M. Ryan & Amanda C. Scott & Chris A. Wallace, 2001. "Optimized Crew Scheduling at Air New Zealand," Interfaces, INFORMS, vol. 31(1), pages 30-56, February.
    5. D Ronen, 2000. "Scheduling charter aircraft," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 51(3), pages 258-262, March.
    6. Marielle Christiansen, 1999. "Decomposition of a Combined Inventory and Time Constrained Ship Routing Problem," Transportation Science, INFORMS, vol. 33(1), pages 3-16, February.
    7. Charles S. Revelle & Gilbert Laporte, 1996. "The Plant Location Problem: New Models and Research Prospects," Operations Research, INFORMS, vol. 44(6), pages 864-874, December.
    8. T. L. Magnanti & R. T. Wong, 1984. "Network Design and Transportation Planning: Models and Algorithms," Transportation Science, INFORMS, vol. 18(1), pages 1-55, February.
    9. Mina, Hokey & Jayaraman, Vaidyanathan & Srivastava, Rajesh, 1998. "Combined location-routing problems: A synthesis and future research directions," European Journal of Operational Research, Elsevier, vol. 108(1), pages 1-15, July.
    10. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    11. A. Balakrishnan & T. L. Magnanti & R. T. Wong, 1989. "A Dual-Ascent Procedure for Large-Scale Uncapacitated Network Design," Operations Research, INFORMS, vol. 37(5), pages 716-740, October.
    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. Claudio Contardo & Jean-François Cordeau & Bernard Gendron, 2014. "An Exact Algorithm Based on Cut-and-Column Generation for the Capacitated Location-Routing Problem," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 88-102, February.
    2. Waldemarsson, Martin & Lidestam, Helene & Karlsson, Magnus, 2017. "How energy price changes can affect production- and supply chain planning – A case study at a pulp company," Applied Energy, Elsevier, vol. 203(C), pages 333-347.
    3. Mobtaker, A. & Ouhimmou, M. & Audy, J.-F. & Rönnqvist, M., 2021. "A review on decision support systems for tactical logistics planning in the context of forest bioeconomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    4. Sahar Validi & Arijit Bhattacharya & P. J. Byrne, 2020. "Sustainable distribution system design: a two-phase DoE-guided meta-heuristic solution approach for a three-echelon bi-objective AHP-integrated location-routing model," Annals of Operations Research, Springer, vol. 290(1), pages 191-222, July.
    5. Danışment Vural & Robert F. Dell & Erkan Kose, 2021. "Locating unmanned aircraft systems for multiple missions under different weather conditions," Operational Research, Springer, vol. 21(1), pages 725-744, March.
    6. de Assis, Leonardo Salsano & Camponogara, Eduardo, 2016. "A MILP model for planning the trips of dynamic positioned tankers with variable travel time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 372-388.
    7. Osicka, Ondrej & Guajardo, Mario & van Oost, Thibault, 2018. "Cooperative game-theoretic features of cost sharing in location-routing," Discussion Papers 2018/11, Norwegian School of Economics, Department of Business and Management Science.

    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. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    2. Tadashi Yamada & Bona Frazila Russ & Jun Castro & Eiichi Taniguchi, 2009. "Designing Multimodal Freight Transport Networks: A Heuristic Approach and Applications," Transportation Science, INFORMS, vol. 43(2), pages 129-143, May.
    3. Melkote, Sanjay & Daskin, Mark S., 2001. "An integrated model of facility location and transportation network design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(6), pages 515-538, July.
    4. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    5. Roar Grønhaug & Marielle Christiansen & Guy Desaulniers & Jacques Desrosiers, 2010. "A Branch-and-Price Method for a Liquefied Natural Gas Inventory Routing Problem," Transportation Science, INFORMS, vol. 44(3), pages 400-415, August.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Cynthia Barnhart & Hong Jin & Pamela H. Vance, 2000. "Railroad Blocking: A Network Design Application," Operations Research, INFORMS, vol. 48(4), pages 603-614, August.
    11. Brønmo, Geir & Nygreen, Bjørn & Lysgaard, Jens, 2010. "Column generation approaches to ship scheduling with flexible cargo sizes," European Journal of Operational Research, Elsevier, vol. 200(1), pages 139-150, January.
    12. Alejandro Toriello & George Nemhauser & Martin Savelsbergh, 2010. "Decomposing inventory routing problems with approximate value functions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 57(8), pages 718-727, December.
    13. 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.
    14. Ahmad Baubaid & Natashia Boland & Martin Savelsbergh, 2021. "The Value of Limited Flexibility in Service Network Designs," Transportation Science, INFORMS, vol. 55(1), pages 52-74, 1-2.
    15. 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.
    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. 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.
    18. 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.
    19. Xu, Dongyang & Li, Kunpeng & Zou, Xuxia & Liu, Ling, 2017. "An unpaired pickup and delivery vehicle routing problem with multi-visit," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 218-247.
    20. Hennig, F. & Nygreen, B. & Christiansen, M. & Fagerholt, K. & Furman, K.C. & Song, J. & Kocis, G.R. & Warrick, P.H., 2012. "Maritime crude oil transportation – A split pickup and split delivery problem," European Journal of Operational Research, Elsevier, vol. 218(3), pages 764-774.

    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:pal:jorsoc:v:57:y:2006:i:8:d:10.1057_palgrave.jors.2602057. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.