Science and Technology Production
Article
Authorship
Date
2017
Publishing House and Editing Place
Pergamon-Elsevier Science Ltd
Magazine
COMPUTERS AND CHEMICAL ENGINEERING,
vol. 106
(pp. 373-384)
Pergamon-Elsevier Science Ltd
Summary
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Fluid chemicals are usually distributed according two main methodologies; the vendor managed inventory modality and the order-based re-supply modality. In this paper, the problem of optimizing the delivery of fluids by tanker trucks on a daily basis according the order-basedresupply methodology is addressed. According to this modality, replenishment orders are triggered by customers specifying the quantity of fluids and time-windows within which the delivery must be fulfilled. The objective is ...
Fluid chemicals are usually distributed according two main methodologies; the vendor managed inventory modality and the order-based re-supply modality. In this paper, the problem of optimizing the delivery of fluids by tanker trucks on a daily basis according the order-basedresupply methodology is addressed. According to this modality, replenishment orders are triggered by customers specifying the quantity of fluids and time-windows within which the delivery must be fulfilled. The objective is to minimize the replenishment cost while meeting customers orders over the pre-defined time-horizon. An Integer Program modelling the problem is proposed and used to develop an incomplete branch & price procedure with the purpose of finding near optimal solutions to instances arising from realistic examples. A computational study on realistic examples with different topologies demonstrates that the method is effective and able to provide solutions with integrality gaps below the 16% threshold for instances with 120 orders.
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Key Words
INVENTORY CONSTRAINTSINCOMPLETE BRANCH-AND-PRICEDISTRIBUTION OF FLUIDSORDER-BASED-RESUPPLY
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