Highlights Mixed Integer Programming Model for the two echelon production routing problems with satellites. Branch-and-cut algorithm with valid inequalities and a matheuristic. Extensive computational results to validate the algorithm and sensitivity analysis. Management insights on dynamic balance among various cost components.

    Abstract This paper introduces a mixed integer programming model for the two-echelon production routing problem with cross-docking satellites. This problem is important in e-commerce, home delivery services, and city logistics. To solve this problem, we propose a branch-and-cut algorithm with proved valid inequalities and a matheuristic that can provide feasible initial solutions. Extensive computational results are reported, which are obtained on instances derived from benchmarks for the production routing problems and two echelon vehicle routing problems. Management insights on dynamic balance among handling costs, inventory costs, and routing costs are also drawn from the sensitivity analysis.


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    Title :

    The two-echelon production routing problem with cross-docking satellites


    Contributors:
    Qiu, Yuzhuo (author) / Zhou, Dan (author) / Du, Yanan (author) / Liu, Jie (author) / Pardalos, Panos M. (author) / Qiao, Jun (author)


    Publication date :

    2020-12-20




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English





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