The two-echelon inventory-routing problem with fleet management

•We introduce fleet management in the context of inventory-routing.•We study different combinations of inventory policies and fleet management costs.•We design a matheuristic and a hybrid parallel exact algorithm based on branch-and-cut.•We validate our algorithms on a special case of our problem fr...

Full description

Saved in:
Bibliographic Details
Published in:Computers & operations research Vol. 121; p. 104944
Main Authors: Schenekemberg, Cleder M., Scarpin, Cassius T., Pécora, José E., Guimarães, Thiago A., Coelho, Leandro C.
Format: Journal Article
Language:English
Published: New York Elsevier Ltd 01.09.2020
Pergamon Press Inc
Subjects:
Algorithms
Branch-and-cut
Decisions
Fleet management
Inventory
Inventory management
Management decisions
Matheuristic
Operations research
Parallel computing
Route planning
Supply chains
Two-echelon inventory-routing
Vehicle routing
Two-echelon inventory-routing
Parallel computing
Matheuristic
Fleet management
Branch-and-cut
ISSN:0305-0548, 1873-765X, 0305-0548
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:•We introduce fleet management in the context of inventory-routing.•We study different combinations of inventory policies and fleet management costs.•We design a matheuristic and a hybrid parallel exact algorithm based on branch-and-cut.•We validate our algorithms on a special case of our problem from the literature, obtaining all BKSs.•We show that a more complex logistics system leads to greater efficiency in logistics operations. This paper introduces the Two-Echelon Inventory-Routing Problem with Fleet Management. This problem arises under a two-echelon vendor-managed inventory system when a company must make vehicle routing and inventory management decisions, while renting a fleet subject to short- and mid-term agreements. Different chemical products are transported contaminating the vehicles that may require cleaning activities. Pickups of input take place in the first echelon, and the final product deliveries are performed in the second echelon. Based on a real-life case in the petrochemical industry, we introduce a formulation that takes into account vehicle rentals, cleanings, transportation, inventory management, and vehicle returns decisions. We design a branch-and-cut algorithm to solve it and also propose a matheuristic, in which vehicle routes are handled by an adaptive large neighborhood mechanism, while input pickups, product deliveries, and fleet planning are performed by solving several subproblems to optimality. Moreover, we introduce a hybrid parallel framework, combining our matheuristic and the branch-and-cut algorithm in order to solve very large instances exactly. We validate our methods by solving a set of instances of the two-echelon multi-depot inventory-routing problem from the literature, obtaining new best solutions for all instances. We have introduced a set of instances for this rich and new problem, and performed an extensive assessment of our methods. The results provide interesting data about the supply chain structure.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
ISSN:0305-0548
1873-765X
0305-0548
DOI:10.1016/j.cor.2020.104944