Multi-item production routing problem with backordering: a MILP approach

The aim of this paper is to present mixed integer linear programming formulations for the production routing problem with backordering (PRP-B) and a new hybrid heuristic to solve the problem. The PRP-B is considered in the context of a supply chain consisting of a production facility with limited pr...

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Published in:International journal of production research Vol. 54; no. 4; pp. 1076 - 1093
Main Authors: Brahimi, Nadjib, Aouam, Tarik
Format: Journal Article
Language:English
Published: London Taylor & Francis 16-02-2016
Taylor & Francis LLC
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Abstract The aim of this paper is to present mixed integer linear programming formulations for the production routing problem with backordering (PRP-B) and a new hybrid heuristic to solve the problem. The PRP-B is considered in the context of a supply chain consisting of a production facility with limited production and storage capacities and geographically dispersed points of sale with limited storage capacities. The PRP-B integrates multiple item lot sizing decisions and vehicle routing decisions to the points of sale, where backordering of end customer demands is allowed at a penalty. Two integrated mixed integer programming models are formulated and a solution procedure consisting of a relax-and-fix heuristic combined with a local search algorithm is proposed. The numerical results show that this hybrid heuristic outperforms a state-of-the-art MIP commercial solver, in terms of solution quality and CPU times.
AbstractList The aim of this paper is to present mixed integer linear programming formulations for the production routing problem with backordering (PRP-B) and a new hybrid heuristic to solve the problem. The PRP-B is considered in the context of a supply chain consisting of a production facility with limited production and storage capacities and geographically dispersed points of sale with limited storage capacities. The PRP-B integrates multiple item lot sizing decisions and vehicle routing decisions to the points of sale, where backordering of end customer demands is allowed at a penalty. Two integrated mixed integer programming models are formulated and a solution procedure consisting of a relax-and-fix heuristic combined with a local search algorithm is proposed. The numerical results show that this hybrid heuristic outperforms a state-of-the-art MIP commercial solver, in terms of solution quality and CPU times.
Author Brahimi, Nadjib
Aouam, Tarik
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  givenname: Tarik
  surname: Aouam
  fullname: Aouam, Tarik
  organization: Faculty of Economics and Business Administration, Department of Business Informatics and Operations Management, Ghent University
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Snippet The aim of this paper is to present mixed integer linear programming formulations for the production routing problem with backordering (PRP-B) and a new hybrid...
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SubjectTerms backordering
Decisions
Heuristic
Integer programming
Linear programming
lot sizing problem
Mathematical models
Mixed integer
Optimization
Production planning
production routing problem
relax-and-fix heuristic
Routing
Sales
Solvers
Storage capacity
vehicle routing problem
Title Multi-item production routing problem with backordering: a MILP approach
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