Combining service frequency and vehicle routing for managing supplier shipments

Zhijie Dong and Mark A. Turnquist

Transportation Research Part E: Logistics and Transportation Review, 2015, vol. 79, issue C, 231-243

Abstract: This paper proposes a new approach to designing inbound material collection routes that considers pick-up frequency and spatial design as joint decisions to minimize total logistics (transportation plus inventory) cost. The clustering-based optimization uses an approximation to the actual cost of a routing solution without actual route construction. We show that the problem is analogous to a single-source fixed-charge facility location problem, and near-optimal solutions can be found using an efficient heuristic algorithm. Tests show the effectiveness of how this model is formulated and a case study demonstrates that substantial total cost savings can be achieved in realistic applications.

Keywords: Capacitated clustering; Frequency–location clustering; Inventory routing problem; Vehicle routing problem; Single-source fixed charge facility location problem (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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DOI: 10.1016/j.tre.2015.05.002

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