A fix and optimize method based approximate dynamic programming approach for the strategic fleet sizing and delivery planning problem

Logistics related costs constitute a major part in total cost of a product in general. Considering a company that delivers goods to its customers using its owned fleet, fleet ownership and operational costs together with the inventory costs compose the total logistics costs. In this study, we sugges...

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Vydané v:	Central European journal of operations research Ročník 33; číslo 1; s. 91 - 119
Hlavní autori:	Aghazadeh, Duygu, Ertogral, Kadir
Médium:	Journal Article
Jazyk:	English
Vydavateľské údaje:	Berlin/Heidelberg Springer Berlin Heidelberg 01.03.2025 Springer Nature B.V
Predmet:	Algorithms Business and Management Composition Customers Distribution costs Dynamic programming Efficiency Energy consumption Heuristic Inventory control Logistics Operating costs Operations Research/Decision Theory Optimization Original Paper Ownership Pareto optimum Planning Replenishment Suppliers Supply chains Vehicles Approximate dynamic programming Fix and optimize Fleet sizing Replenishment planning
ISSN:	1435-246X, 1613-9178
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Abstract	Logistics related costs constitute a major part in total cost of a product in general. Considering a company that delivers goods to its customers using its owned fleet, fleet ownership and operational costs together with the inventory costs compose the total logistics costs. In this study, we suggest an approximate Dynamic Programming algorithm, with a look ahead strategy, that uses the fix and optimize method as the imbedded heuristic for solving integrated fleet composition and replenishment planning problem. The total annual distribution cost factors considered in the problem are vehicle ownership costs, approximate routing costs, and inventory related costs. In this problem, we aim to minimize the total logistic cost by optimizing the fleet composition, replenishment patterns, and customers assigned to each vehicle in the fleet. We produced a set of reasonably large instances randomly and showed the efficacy of the suggested solution method.
AbstractList	Logistics related costs constitute a major part in total cost of a product in general. Considering a company that delivers goods to its customers using its owned fleet, fleet ownership and operational costs together with the inventory costs compose the total logistics costs. In this study, we suggest an approximate Dynamic Programming algorithm, with a look ahead strategy, that uses the fix and optimize method as the imbedded heuristic for solving integrated fleet composition and replenishment planning problem. The total annual distribution cost factors considered in the problem are vehicle ownership costs, approximate routing costs, and inventory related costs. In this problem, we aim to minimize the total logistic cost by optimizing the fleet composition, replenishment patterns, and customers assigned to each vehicle in the fleet. We produced a set of reasonably large instances randomly and showed the efficacy of the suggested solution method.
Author	Aghazadeh, Duygu Ertogral, Kadir
Author_xml	– sequence: 1 givenname: Duygu orcidid: 0000-0001-7218-3975 surname: Aghazadeh fullname: Aghazadeh, Duygu organization: Logistics Management Department, University of Turkish Aeronautical Association – sequence: 2 givenname: Kadir surname: Ertogral fullname: Ertogral, Kadir email: kertogral@qu.edu.qa organization: Mechanical and Industrial Engineering Department, Qatar University
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Cites_doi	10.1016/S0925-5273(98)00235-7 10.1080/07408170590918083 10.3934/jimo.2023107 10.1080/00207543.2010.532933 10.1016/j.omega.2015.03.002 10.1016/j.jretconser.2020.102137 10.1007/s00291-012-0283-6 10.1287/trsc.1080.0238 10.1007/s10100-007-0036-9 10.1287/opre.42.5.879 10.1287/mnsc.46.7.973.12032 10.1016/j.omega.2019.05.002 10.1016/j.cie.2018.11.014 10.1016/j.ijpe.2009.08.022 10.1080/00207543.2011.559486 10.1111/j.1475-3995.2008.00679.x 10.1016/j.tre.2008.10.003 10.1016/j.cor.2008.05.004 10.1016/j.tre.2018.03.004 10.1016/0305-0548(91)90028-P 10.1016/j.cor.2014.06.023 10.1073/pnas.43.8.749 10.1007/s10489-014-0626-x 10.1007/s10696-015-9219-1 10.1051/ro/2019025 10.1016/S0191-2615(96)00029-X 10.1007/s10732-005-0616-6 10.1007/s00291-005-0207-9 10.1002/atr.111 10.1002/(SICI)1520-6750(199608)43:5<655::AID-NAV4>3.0.CO;2-4 10.1016/j.tre.2021.102223 10.1287/opre.1070.0392 10.1287/mnsc.48.4.550.208 10.1007/s10100-023-00849-1 10.1016/j.tre.2022.102679 10.1016/j.ejor.2015.02.032 10.1016/j.cor.2004.07.012 10.1007/s10951-009-0160-6
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SubjectTerms	Algorithms Business and Management Composition Customers Distribution costs Dynamic programming Efficiency Energy consumption Heuristic Inventory control Logistics Operating costs Operations Research/Decision Theory Optimization Original Paper Ownership Pareto optimum Planning Replenishment Suppliers Supply chains Vehicles
Title	A fix and optimize method based approximate dynamic programming approach for the strategic fleet sizing and delivery planning problem
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