DVRP with limited supply and variable neighborhood region in refined oil distribution
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DVRP with limited supply and variable neighborhood region in refined oil distribution Xiaofeng Xu1
· Ziru Lin1 · Jing Zhu2
© Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract Limited supply can be an emergent issue in refined oil distribution, which may increase operating cost and decrease gasoline station satisfaction with shortage. Hence, how to devise an optimal distribution scheme is the central problem for oil distribution companies. The main problem with limited supply involves: (I) depicting the dynamic efforts on vehicle routing driven by the demand and priority of gasoline stations, and (II) incorporating the efforts into variable distribution region division associated with oil depots. In this paper, we propose a multi-objective optimization model for dynamic vehicle routing problem with limited supply in oil distribution with variable neighborhood region. First, a preliminary multi-stage model for dynamic vehicle routing problem is designed, which takes operating cost, gasoline station satisfaction and priority into consider in the setting of limited supply. Based on the preliminary model, a variable neighborhood region division model is presented for oil depot supply and tanker delivery, in light of Fuzzy C-means algorithm and justifiable granularity principle. Finally, the experimental results show that the dynamic vehicle programming model with variable neighborhood performs better than other comparable scenarios at cost savings and satisfaction improvement. Keywords DVRPLS · Variable neighborhood region · Justifiable granularity principle · Multi-objective optimization · Refined oil distribution
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Xiaofeng Xu [email protected] Ziru Lin [email protected] Jing Zhu [email protected]
1
School of Economics and Management, China University of Petroleum, Qingdao 266580, China
2
School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, China
123
Annals of Operations Research
1 Introduction The refined oil distribution from oil depots to gasoline stations is the terminal delivery of the whole distribution network, which directly provides energy security for residents’ consumption and economic operation. Refined oil shortage is an emergency caused by policy restrictions, exploitation limits, seasonal factors and other constrains, which can not fully meet the demand and result in economic losses. The limited supply of refined oil will result in the failure of satisfying the demand of all stations, which will affect the distribution region and service efficiency of oil distribution center (ODC) and bring severe challenges to the security of energy supply. So it is necessary for ODC to optimize and adjust the distribution scheme, meet the demand from gasoline stations and reduce the losses for shortage as much as possible. In case of limited supply, some real-time information, including gasoline station demand or traffic conditions, inevitably changes over the distribution cycle. If ODC can not respond to these information and ad
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