A mathematical programming-based heuristic for the production routing problem with transshipments


Avci M., Yildiz Ş. A.

COMPUTERS & OPERATIONS RESEARCH, vol.123, 2020 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 123
  • Publication Date: 2020
  • Doi Number: 10.1016/j.cor.2020.105042
  • Journal Name: COMPUTERS & OPERATIONS RESEARCH
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, PASCAL, ABI/INFORM, Aerospace Database, Applied Science & Technology Source, Business Source Elite, Business Source Premier, Communication Abstracts, Compendex, Computer & Applied Sciences, INSPEC, Metadex, zbMATH, Civil Engineering Abstracts
  • Keywords: Production routing, Heuristics, Transshipment, INTEGRATED PRODUCTION, LATERAL TRANSSHIPMENTS, NEIGHBORHOOD SEARCH, INVENTORY, ALGORITHM, REPLENISHMENT, FORMULATIONS, MANAGEMENT, DELIVERY, POLICIES
  • Dokuz Eylül University Affiliated: Yes

Abstract

The production routing problem (PRP) is a difficult optimization problem which arises in the planning of integrated supply chains. The purpose of solving the PRP is the simultaneous optimization of the production, inventory, distribution, and routing decisions, which typically appears in vendor managed inventory systems. In this study, the classical PRP is extended by considering transshipments, either from supplier to retailers or between retailers, to further reduce the total cost. A mathematical programming-based heuristic is proposed to solve the problem. The algorithm is applied to two sets of randomly generated problem instances. The computational results show that the proposed approach is effective in solving the problem. Moreover, we conduct extensive numerical experiments to analyze the impact of the transshipments on the overall system. (C) 2020 Elsevier Ltd. All rights reserved.