Science and Technology Production
Article
Authorship
Date
2020
Publishing House and Editing Place
PERGAMON-ELSEVIER SCIENCE LTD
Magazine
COMPUTERS AND CHEMICAL ENGINEERING,
vol. 134
(pp. 1-17)
PERGAMON-ELSEVIER SCIENCE LTD
Summary
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This paper deals with the problem of optimally planning the production, inventory and distribution of products transported via multi-compartment vehicles. It assumes that facilities in the distribution network have preservation-storing devices to inventory products on-site. Production activities may be performed on any time period of the planning horizon. Due to problem complexity, a two-stage solution strategy that first generates a set of multi-period distribution routes through a column gene...
This paper deals with the problem of optimally planning the production, inventory and distribution of products transported via multi-compartment vehicles. It assumes that facilities in the distribution network have preservation-storing devices to inventory products on-site. Production activities may be performed on any time period of the planning horizon. Due to problem complexity, a two-stage solution strategy that first generates a set of multi-period distribution routes through a column generation approach is proposed. The routes are used for feeding the MILP formulation of the problem. Several valid inequalities are proposed for expediting the MILP resolution. The aim is to maximize the profit obtained by the company that fabricates and distributes the products. This profit is computed as the total income from sales minus the sum of all costs incurred along the planning horizon. The effectiveness of the two-stage solution strategy is tested on an extensive set of realistic instances.
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Key Words
INVENTORY ROUTINGCOLUMN GENERATIONPRODUCTION PLANNINGMULTI-COMPARTMENT VEHICLESMILP
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