Heuristic algorithms for a multi-period multi-stop transportation planning problem
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#2002 Operational Research Society Ltd. All rights reserved. 0160-5682/02 $15.00 www.palgrave-journals.com/jors
Heuristic algorithms for a multi-period multi-stop transportation planning problem J-U Kim1, Y-D Kim2* and S-O Shim2 1
Entrue Consulting Partners, LG CNS Co. Ltd., Jung-gu, Seoul 100-630, South Korea; and 2Korea Advanced Institute of Science and Technology, Yusong-gu, Daejon 305-701, South Korea We consider a multi-period multi-stop transportation planning problem (MPMSTP) in a one-warehouse multi-retailer distribution system where a fleet of homogeneous vehicles delivers products from a warehouse to retailers. The objective of the MPMSTP is to minimize the total transportation distance for product delivery over the planning horizon while satisfying demands of the retailers. We suggest two heuristic algorithms based on the column generation method and the simulated annealing algorithm. Computational experiments on randomly generated test problems showed that the suggested algorithms gave better solutions than an algorithm currently used in practice and algorithms modified from existing algorithms for vehicle routing problems. Journal of the Operational Research Society (2002) 53, 1027–1037. doi:10.1057/palgrave.jors.2601386 Keywords: logistics; distribution planning; vehicle routing; column generation; simulated annealing
Introduction Nowadays, effective management of the supply chain is recognized as a key determinant of competitiveness and success for most manufacturing organizations.1 One part of the supply chain that is attracting growing attention is the local distribution network consisting of multiple retail outlets supplied by a central warehouse or distribution centre.2 This paper presents a methodology for the management of such a segment of a supply chain with an integrated approach to the decisions for both inventory control and transportation planning. We consider a case where there are a central warehouse and several geographically dispersed retailers. The central warehouse dispatches vehicles to supply retailers with goods. Each vehicle starts from the warehouse, visits several retailers, and comes back to the warehouse, where a route of the vehicle ends. In this paper, we give algorithms to determine a replenishment schedule (replenishment quantities and vehicle routes) that minimizes transportation costs over a given planning horizon while satisfying demands of the retailers. There are a few works on combined problems of inventory management and transportation planning. Anily and Federgruen,3,4 Anily,5 Viswanathan and Mathur,6 and Herer and Roundy7 consider distribution systems with one warehouse and multiple retailers of which the demand rates are uniform and deterministic. Vehicle routing has been consid*Correspondence: Y-D Kim, Department of Industrial Engineering, Korea Advanced Institute of Science and Technology, Yusong-gu, Daejon 305-701, South Korea. E-mail: [email protected]
ered simultaneously with inventory management in the socalled inventory routing problem by Federg
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