A fix and optimize method based approximate dynamic programming approach for the strategic fleet sizing and delivery planning problem

Duygu Aghazadeh () and Kadir Ertogral ()
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Duygu Aghazadeh: University of Turkish Aeronautical Association
Kadir Ertogral: Qatar University

Central European Journal of Operations Research, 2025, vol. 33, issue 1, No 5, 119 pages

Abstract: Abstract Logistics related costs constitute a major part in total cost of a product in general. Considering a company that delivers goods to its customers using its owned fleet, fleet ownership and operational costs together with the inventory costs compose the total logistics costs. In this study, we suggest an approximate Dynamic Programming algorithm, with a look ahead strategy, that uses the fix and optimize method as the imbedded heuristic for solving integrated fleet composition and replenishment planning problem. The total annual distribution cost factors considered in the problem are vehicle ownership costs, approximate routing costs, and inventory related costs. In this problem, we aim to minimize the total logistic cost by optimizing the fleet composition, replenishment patterns, and customers assigned to each vehicle in the fleet. We produced a set of reasonably large instances randomly and showed the efficacy of the suggested solution method.

Keywords: Fix and optimize; Approximate dynamic programming; Fleet sizing; Replenishment planning (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10100-024-00911-6

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