2019
Authors
Martins, S; Amorim, P; Almada Lobo, B;
Publication
Springer Proceedings in Mathematics and Statistics
Abstract
In the food retail sector, maintaining the food quality across the supply chain is of vital importance. The quality of the products is dependent on its storage and transportation conditions and this peculiarity increases the supply chain complexity relatively to other types of retailers. Actually, in this industry there are three types of food supply chains: frozen, chilled and ambient. Moreover, food retailers run different store formats, of different sizes, assortments and sales volume. In this study we research the trade-off between consolidating a range of products in order to perform direct deliveries to the stores versus performing separate delivery routes for products with different transportation requirements. A new consistency dimension is proposed regarding the periodicity that a consolidation strategy is implemented. The aim of this paper is to define a consolidation strategy for the delivery mode planning that allows to smooth the complexity of grocery retail operations. A three-step approach is proposed to tackle a real size problem in a case-study with a major Portuguese grocery retailer. By changing the consolidation strategy with a complete consistent plan the company could reach annual savings of around 4%. © 2019, Springer Nature Switzerland AG.
2019
Authors
Campelo, P; Neves Moreira, F; Amorim, P; Almada Lobo, B;
Publication
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Abstract
In this paper, a mathematical model is developed to tackle a Consistent Vehicle Routing Problem, which considers customers with multiple daily deliveries and different service level agreements such as time windows, and release dates. In order to solve this problem, an instance size reduction algorithm and a mathematical programming based decomposition approach are developed. This solution approach is benchmarked against a commercial solver. Results indicate that the method solves instances of large size, enabling its application to real-life scenarios. A case study in a pharmaceutical distribution company is analyzed. Consistent routes are planned for several warehouses, comprising hundreds of orders. A simulation model evaluates the performance of the generated route plans. Significant improvements in terms of the total distance traveled and the total travel times are obtained when compared to the company's current planning process.
2019
Authors
Martins, S; Ostermeier, M; Amorim, P; Huebner, A; Almada Lobo, B;
Publication
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Abstract
Besides fuel and waste distribution, one core application of multi-compartment vehicles (MCVs) is the distribution of groceries, as they enable retailers to jointly transport products with different temperature requirements, thus reducing the number of visits to a store. Grocery stores usually define preferable time windows that depend on the temperature of products (for example, fresh products in the morning) to indicate when deliveries should occur to better plan their in-store operations. Distribution planning therefore needs to take these preferences into consideration to obtain consistent delivery times. This work extends the research on multi-compartment vehicle routing problems (MCVRPs) by tackling a multi-period setting with a product-oriented time window assignment. In this problem, a fleet of MCVs is used for distribution and a unique time window for the delivery of each product segment to each store is defined consistently throughout the planning horizon. An ALNS is proposed to solve the product-oriented time window assignment for MCVRP. Daily and weekly operators are developed respectively focusing on the improvement of routing aspects of the problem on each day and aligning the time window assignment consistently throughout the planning horizon. The approach is tested on benchmark instances from the literature to demonstrate its effectiveness. We also use direct information from retail practice and enhance this with simulated data to further generalize our findings. The numerical experiments demonstrate that planning consistent MCV distribution leads to better overall solutions than the ex-post time window assignment of daily plans, facilitating more on-time deliveries.
2019
Authors
Neves Moreira, F; Almada Lobo, B; Cordeau, JF; Guimaraes, L; Jans, R;
Publication
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
Abstract
Even though the joint optimization of sequential activities in supply chains is known to yield significant cost savings, the literature concerning optimization approaches that handle the real-life features of industrial problems is scant. The problem addressed in this work is inspired by industrial contexts where vendor-managed inventory policies are applied. In particular, our study is motivated by a meat producer whose supply chain comprises a single meat processing centre with several production lines and a fleet of vehicles that is used to deliver different products to meat stores spread across the country. A considerable set of characteristics, such as product family setups, perishable products, and delivery time windows, needs to be considered in order to obtain feasible integrated plans. However, the dimensions of the problem make it impossible to be solved exactly by current solution methods. We propose a novel three-phase methodology to tackle a large Production-Routing Problem (PRP) combining realistic features for the first time. In the first phase, we attempt to reduce the size of the original problem by simplifying some dimensions such as the number of products, locations and possible routes. In the second phase, an initial PRP solution is constructed through a problem decomposition comprising several inventory-routing problems and one lot-sizing problem. In the third phase, the initial solution is improved by different mixed-integer programming models which focus on small parts of the original problem and search for improvements in the production, inventory management and transportation costs. Our solution approach is tested both on simpler instances available in the literature and on real-world instances containing additional details, specifically developed for a European company's case study. By considering an integrated approach, we achieve global cost savings of 21.73% compared to the company's solution.
2019
Authors
Woerbelauer, M; Meyr, H; Almada Lobo, B;
Publication
OR SPECTRUM
Abstract
Typical simultaneous lotsizing and scheduling models consider the limited capacity of the production system by respecting a maximum time the respective machines or production lines can be available. Further limitations of the production quantities can arise by the scarce availability of, e.g., setup tools, setup operators or raw materials which thus cannot be neglected in optimization models. In the literature on simultaneous lotsizing and scheduling, these production factors are called secondary resources. This paper provides a structured overview of the literature on simultaneous lotsizing and scheduling involving secondary resources. The proposed classification yields for the first time a unified view of scarce production factors. The insights about different types of secondary resources help to develop a new model formulation generalizing and extending the currently used approaches that are specific for some settings. Some illustrative examples demonstrate the functional principle and flexibility of this new formulation which can thus be used for a wide range of applications.
2019
Authors
Wei, WC; Amorim, P; Guimaraes, L; Almada Lobo, B;
Publication
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Abstract
The classical multi-level lot-sizing and scheduling problem formulations for process industries rarely address perishability issues, such as limited shelf lives of intermediate products. In some industries, ignoring this specificity may result in severe losses. In this paper, we start by extending a classical multi-level lot-sizing and scheduling problem formulation (MLGLSP) to incorporate perishability issues. We further demonstrate that with the objective of minimising the total costs (purchasing, inventory and setup), the production plans generated by classical models are often infeasible under a setting with perishable products. The model distinguishes different perishability characteristics of raw materials, intermediates and end products according to various industries. Finally, we provide quantitative insights on the importance of considering perishability for different production settings when solving integrated production planning and scheduling problems.
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