Highlights The optimization model considers pick-up frequency and spatial clustering jointly. The actual cost of a routing solution is approximated without route construction. The problem is equivalent to a single-source fixed charge facility location problem. Results of numerical experiments show the effectiveness of the model formulation. Substantial total cost savings can be achieved in realistic applications.

    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.


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    Title :

    Combining service frequency and vehicle routing for managing supplier shipments


    Contributors:


    Publication date :

    2015-05-02


    Size :

    13 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English