4.7 Article

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

Publisher

PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2020.102210

Keywords

Vehicle routing; Production planning; Two-echelon networks; Material handling

Funding

  1. NSFC [71571092]
  2. High-level Talent Project from Six Peaks of Top Talents in Jiangsu Province [JY-076]
  3. Young and Middle-aged Academic Leaders from Green-Blue Project of Colleges and Universities in Jiangsu Province
  4. Major Projects for Natural Science Research in Colleges and Universities of Jiangsu Province [19KJA520002]
  5. Priority Academic Program Development of Jiangsu Higher Education Institutions (PAPD)

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This paper presents a mixed integer programming model for the two-echelon production routing problem with cross-docking satellites, demonstrating a branch-and-cut algorithm and a matheuristic approach for solving it. Extensive computational results are provided, derived from benchmarks for production routing problems and two echelon vehicle routing problems. Insights on dynamic balance among handling costs, inventory costs, and routing costs are drawn from sensitivity analysis.
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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