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A Branch-and-Price Approach for a Ship Routing Problem with Multiple Products and Inventory Constraints

Author

Listed:
  • de Mare, R.
  • Spliet, R.
  • Huisman, D.

Abstract

In the oil industry, different oil components are blended in a refinery to fuel products. These products are transported to different harbors by ship. Due to the limited storage capacity at the harbors and the undesirability of a stock-out, inventory levels at the harbors have to be taken into account during the construction of the ship routes. In this paper, we give a detailed description of this problem, which we call the ship routing problem with multiple products and inventory constraints. Furthermore, we formulate this problem as a generalized set-covering problem, and we present a Branch-and-Price algorithm to solve it. The pricing problems have a very complex nature. We discuss a dynamic programming algorithm to solve them to optimality.

Suggested Citation

  • 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.
    • Handle: RePEc:ems:eureir:18255
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    References listed on IDEAS

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    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. Marielle Christiansen & Bjørn Nygreen, 2005. "Robust Inventory Ship Routing by Column Generation," Springer Books, in: Guy Desaulniers & Jacques Desrosiers & Marius M. Solomon (ed.), Column Generation, chapter 0, pages 197-224, Springer.
    3. 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.
    4. 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.
    5. Marielle Christiansen, 1999. "Decomposition of a Combined Inventory and Time Constrained Ship Routing Problem," Transportation Science, INFORMS, vol. 33(1), pages 3-16, February.
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