2016
Autores
Amorim, P; Martins, S; Curcio, E; Almada Lobo, B;
Publicação
ERCIM NEWS
Abstract
Large food retailers have to deal with a complex distribution network with multiple distribution centres, different temperature requirements, and a vast range of store formats. This project used an optimization-simulation approach to help food retailer Sonae MC make the best decisions regarding product-warehouse-outlet assignment, product delivery modes planning and fleet sizing.
2015
Autores
Pires, MJ; Amorim, P; Martins, S; Almada Lobo, B;
Publicação
OPERATIONAL RESEARCH
Abstract
In this paper, the main complexities related to the modeling of production planning problems of food products are addressed. We start with a deterministic base model and build a road-map on how to incorporate key features of food production planning. The different "ingredients" are organized around the model components to be extended: constraints, objective functions and parameters. We cover issues such as expiry dates, customers' behavior, discarding costs, value of freshness and age-dependent demand. To understand the impact of these "ingredients", we solve an illustrative example with each corresponding model and analyze the changes on the solution structure of the production plan. The differences across the solutions show the importance of choosing a model suitable to the particular business setting, in order to accommodate the multiple challenges present in these industries. Moreover, acknowledging the perishable nature of the products and evaluating the amount and quality of information at hands may be crucial in lowering overall costs and achieving higher service levels. Afterwards, the deterministic base model is extended to deal with an uncertain demand parameter and risk management issues are discussed using a similar illustrative example. Results indicate the increased importance of risk-management in the production planning of perishable food goods.
2017
Autores
Martins, S; Amorim, P; Figueira, G; Almada Lobo, B;
Publicação
COMPUTERS & INDUSTRIAL ENGINEERING
Abstract
The pharmaceutical industry operates in a very competitive and regulated market The increased pressure of pharmacies to order fewer products and to receive them more frequently is overcharging the pharmaceutical's distribution network Furthermore, the tight margins and the continuous growth of generic drugs consumption are pressing wholesalers to optimize their supply chains. In order to survive, wholesalers are rethinking their strategies to increase competitiveness. This paper proposes an optimization-simulation approach to address the wholesalers network redesign problem, trading off the operational costs and customer service level. Firstly, at a strategic-tactical level, the supply chain network redesign decisions are optimized via a mixed integer programming model. Here, the number, location, function and capacity of the warehouses, the allocation of customers to the warehouses and the capacity and function of the distribution channels are defined. Secondly, at an operation level, the solution found is evaluated by means of a discrete event simulation model to assess the impact of the redesign in the wholesaler's daily activities. Computational results on a pharmaceutical wholesaler case-study are discussed and the benefits of this solution approach exposed.
2018
Autores
Ostermeier, M; Martins, S; Amorim, P; Huebner, A;
Publicação
OR SPECTRUM
Abstract
Multi-compartment vehicles (MCVs) can deliver several product segments jointly. Separate compartments are necessary as each product segment has its own specific characteristics and segments cannot be mixed during transportation. The size and position of the compartments can be adjusted for each tour with the use of flexible compartments. However, this requires that the compartments can be accessed for loading/unloading. The layout of the compartments is defined by the customer and segment sequence, and it needs to be organized in a way that no blocking occurs during loading/unloading processes. Routing and loading layouts are interdependent for MCVs. This paper addresses such loading/unloading issues raised in the distribution planning when using MCVs with flexible compartments, loading from the rear, and standardized transportation units. The problem can therefore be described as a two-dimensional loading and multi-compartment vehicle routing problem (2L-MCVRP). We address the problem of obtaining feasible MCV loading with minimal routing, loading and unloading costs. We define the loading problem that configures the compartment setup. Consequently, we develop a branch-and-cut (B&C) algorithm as an exact approach and extend a large neighborhood search (LNS) as a heuristic approach. In both cases, we use the loading model in order to verify the feasibility of the tours and to assess the problem as a routing and loading problem. The loading model dictates the cuts to be performed in the B&C, and it is used as a repair mechanism in the LNS. Numerical studies show that the heuristic reaches the optimal solution for small instances and can be applied efficiently to larger problems. Additionally, further tests on large instances enable us to derive general rules regarding the influence of loading constraints. Our results were validated in a case study with a European retailer. We identified that loading constraints matter even for small instances. Feasible loading can often be achieved only through minor changes to the routing solution and therefore with limited additional costs. Further, the importance to integrate loading constraints grows as the problem size increases, especially when a heterogeneous mix of segments is ordered.
2018
Autores
Martins, S; Amorim, P; Almada Lobo, B;
Publicação
FLEXIBLE SERVICES AND MANUFACTURING JOURNAL
Abstract
In the retail industry, there are multiple products flowing from different distribution centers to brick-and-mortar stores with distinct characteristics. This industry has been suffering radical changes along the years and new market dynamics are making distribution more and more challenging. Consequently, there is a pressure to reduce shipment sizes and increase the delivery frequency. In such a context, defining the most efficient way to supply each store is a critical task. However, the supply chain planning decision that tackles this type of problem, delivery mode planning, is not well defined in the literature. This paper proposes a definition for delivery mode planning and analyzes multiple ways retailers can efficiently supply their brick-and-mortar stores from their distribution centers. The literature addressing this planning problem is reviewed and the main interdependencies with other supply chain planning decisions are discussed.
2019
Autores
Martins, S; Amorim, P; Almada Lobo, B;
Publicação
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.
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