A milk collection problem with blending

Germán Paredes-Belmar, Vladimir Marianov, Andrés Bronfman, Carlos Obreque and Armin Lüer-Villagra

Transportation Research Part E: Logistics and Transportation Review, 2016, vol. 94, issue C, 26-43

Abstract: A milk collection problem with blending is introduced. A firm collects milk from farms, and each farm produces one out of three possible qualities of milk. The revenue increases with quality, and there is a minimum requirement at the plant for each quality. Different qualities of milk can be blended in the trucks, reducing revenues, but also transportation costs, resulting in higher profit. A mixed integer-programming model, a new cut, and a branch-and-cut algorithm are proposed to solve medium-sized instances. A three-stage heuristic is designed for large instances. Computational experience for test instances and a large-sized real case is presented.

Keywords: Routing; Milk collection; Different qualities of milk (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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DOI: 10.1016/j.tre.2016.07.006

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