3016. Inventory Routing with Heterogeneous Vehicles and Backhauling
Invited abstract in session TB-58: Inventory Routing, stream Vehicle Routing and Logistics.
Tuesday, 10:30-12:00Room: Liberty 1.13
Authors (first author is the speaker)
| 1. | amira dems
|
| IREQ / GERAD | |
| 2. | farzad avishan
|
| HEC montreal | |
| 3. | Yossiri Adulyasak
|
| Gestion des Opérations et de la Logistique, HEC Montréal | |
| 4. | Okan Arslan
|
| HEC Montréal and CIRRELT | |
| 5. | Jean-François Cordeau
|
| Department of Logistics and Operations Management, HEC Montréal |
Abstract
Motivated by a real-world problem faced by Hydro-Quebec, a large Canadian utility, this study investigates an inventory routing problem involving the efficient distribution of commodities to sites and the backhauling of materials from these sites to the depots.
We provide a mathematical formulation, introduce valid inequalities,
and solve the resulting model using a branch-and-cut algorithm. To tackle large-size instances, a two-phase decomposition matheuristic is developed that solves the assignment and routing problems iteratively. This study is the first to consider multiple depots, split delivery, heterogeneous vehicles, multiple products, and backhauling in a single model, presenting both exact and heuristic solution methods to solve the problem. The heuristic algorithm solves the synthetic instances in less than two hours with an average optimality gap of less than 2%. Finally, a case study is conducted on the Hydro-Quebec commodity distribution and hazardous
material backhauling network to demonstrate the real-world applicability of the model. We show how the company may benefit from integrating the delivery and backhauling networks. Our proposed model reduces the total routing costs by 21% compared to the case where backhauling is not integrated and split delivery is not allowed.
Keywords
- Branch and Cut
- Logistics
- Supply Chain Management
Status: accepted
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