Fleet deployment, network design and hub location of liner shipping companies

A mixed integer linear programming formulation is proposed for the simultaneous design of network and fleet deployment of a deep-sea liner service provider. The underlying network design problem is based on a 4-index (5-index by considering capacity type) formulation of the hub location problem which are known for their tightness. The demand is elastic in the sense that the service provider can accept any fraction of the origin–destination demand. We then propose a primal decomposition method to solve instances of the problem to optimality. Numerical results confirm superiority of our approach in comparison with a general-purpose mixed integer programming solver.     

Scheduling technicians for planned maintenance of geographically distributed equipment

A real-world planned maintenance scheduling problem that exists at several business units within United Technologies Corporation (UTC) is addressed in this paper. The scheduling problem is formulated as a multiple tour maximum collection problem with time-dependent rewards and an adaptive memory tabu search heuristic is developed to solve it. The effectiveness of the proposed solution approach is examined using real-world problem instances supplied by UTC. Relevant upper bounds are derived for the application. Results of numerical experiments indicate that the proposed tabu search heuristic is able to obtain near optimal solutions for large-size (i.e., actual) problem instances in reasonable computation time.     

A novel modeling approach for the fleet deployment problem within a short-term planning horizon

This paper is concerned with model development for a short-term fleet deployment problem of liner shipping operations. We first present a mixed integer nonlinear programming model in which the optimal vessel speeds for different vessel types on different routes are interpreted as their realistic optimal travel times. We then linearize the proposed nonlinear model and obtain a mixed integer linear programming (MILP) model that can be efficiently solved by a standard mixed integer programming solver such as CPLEX. The MILP model determines the optimal route service frequency pattern and take into account the time window constraints of shipping services. Finally, we report our numerical results and performance of CPLEX on randomly generated instances.     

A polynomial-time heuristic for the quay crane double-cycling problem with internal-reshuffling operations

One of great challenges in seaport management is how to handle containers under reshuffling, called reshuffles. Repositioning reshuffles in a bay (internal reshuffling) can improve the efficiency of quay cranes and help ports to reduce ship turn-around time. This paper studies the quay crane double-cycling problem with internal-reshuffling operations, and presents a fast solution algorithm. To reduce the number of operations necessary to turn around a bay of a vessel, the problem is first formulated as a new integer program. A polynomial-time heuristic is then developed. The analysis is made on the worst-case error bound of the proposed algorithm. Results are presented for a suite of combinations of problem instances with different bay sizes and workload scenarios. Comparisons are made between our algorithm and the start-of-the-art heuristic. The computational results demonstrate that our model can be solved more efficiently with CPLEX than the model proposed by Meisel and Wichmann (2010), and the proposed algorithm can well solve real-world problem instances within several seconds.     

The generalized lock scheduling problem: An exact approach

The present paper introduces an integrated approach to solving the generalized lock scheduling problem. Three interrelated sub problems can be discerned: ship placement, chamber assignment and lockage operation scheduling. In their turn, these are closely related to the 2D bin packing problem, the assignment problem and the (parallel) machine scheduling problem respectively. In previous research, the three sub problems mentioned were considered separately, often using (heuristic) interaction between them to obtain better solutions. A mixed integer linear programming model is presented and applied to instances from both inland locks and locks in a tide independent port. The experiments show that small instances incorporating a wide range of real-life constraints can be solved to optimality.     

Multi-period heterogeneous vehicle routing considering carbon emission trading

This study considers the problem of determining heterogeneous vehicle routes in each period of a given planning horizon while satisfying service combinations, customer demands and vehicle capacities. The objective is to minimize the sum of vehicle operation costs and carbon emission trading cost/benefit, where the trading cost is incurred to purchase the carbon emission right if the total emission exceeds an upper limit in each period, while the trading benefit can be obtained by selling the right in each period, otherwise. A mixed integer programming model is developed to formulate the problem mathematically. Then, a tabu search algorithm is proposed that incorporates the characteristics of the heterogeneous and the period vehicle routing problems while considering the amount of carbon emission in each period. Computational experiments were done on modified benchmark instances and additional random instances, and the results show that the multi-period approach outperforms the existing single-period one in overall average. In particular, the test results show that the multi-period approach can reduce carbon emission more significantly than the single-period one without sacrificing the total cost.     

Combined fleet deployment and inventory management in roll-on/roll-off shipping

In maritime transportation of automobiles, roll-on/roll-off (ro–ro) shipping companies operate liner shipping services across major trade routes. Large ro–ro shipping companies are well placed to offer end-to-end integrated logistics services to auto manufacturers engaged in international trade of vehicles. Therefore, we present a new mixed integer programming model for fleet deployment including inventory management at the ports along each trade route. Due to the complexity of the problem, a rolling horizon heuristic (RHH) is proposed. The RHH solves the problem by iteratively solving sub-problems with shorter planning horizon. Computational results based on real instances are presented.     

Decomposition approach for integrated intermodal logistics network design

The integrated intermodal logistics network design problem consists of determining terminal locations and selecting regular routes and transportation modes for loads. This problem was formulated using a path-based formulation and a decomposition-based search algorithm has been proposed for its solution. Computational results show that this approach is able to obtain optimal solutions for non-trivial problem instances of up to 150 nodes in reasonable computational times. Previous studies have only been able to obtain approximate solutions for network problems of this size. A few general insights about the effects of design parameters on solution characteristics were also obtained.     

A reactive tabu search algorithm for the multi-depot container truck transportation problem

A container truck transportation problem that involves multiple depots with time windows at both origins and destinations, including the reposition of empty containers, is formulated as a multi-traveling salesman problem with time windows (m-TSPTW) with multiple depots. Since the problem is NP-hard, a cluster method and a reactive tabu search (RTS) algorithm are developed to solve the problem. The two methods are compared with the mixed integer program which can be used to find optimum solutions for small size problems. The computational results show that the developed methods, particularly the RTS algorithm, can be efficiently used to solve the problem.     

The multi-period service territory design problem – An introduction,a model and a heuristic approach

In service territory design applications, a field service workforce is responsible for providing recurring services at their customers’ sites. We introduce the associated planning problem, which consists of two subproblems: In the partitioning subproblem, customers must be grouped into service territories. In the scheduling subproblem, customer visits must be scheduled throughout the multi-period planning horizon. The emphasis of this paper is put on the scheduling subproblem. We propose a mixed integer programming model for this subproblem and present a location-allocation heuristic. The results of extensive experiments on real-world instances show that the proposed heuristic produces high-quality solutions.     

Stochastic fleet deployment models for public bicycle rental systems

This paper presents two stochastic bike deployment (SBD) models that determine the optimal number of bicycles allocated to each station in a leisure-oriented public bicycle rental system with stochastic demands. The SBD models represent the stochastic demands using a set of scenarios with given probabilities. A multilayer bike-flow time-space network is constructed for developing the models, where each layer corresponds to a given demand scenario and effectively describes bicycle flows in the spatial and temporal dimensions. As a result, the models are formulated as the integer multi-commodity network flow problem, which is characterized as NP-hard. We propose a heuristic to efficiently obtain good quality solutions for large-size model instances. Test instances are generated using real data from a bicycle rental system in Taiwan to evaluate the performance of the models and the solution algorithm. The test results show that the models can help the system operator of a public bicycle system make effective fleet deployment decisions.     

Handling uncertainties in vehicle routing problems through data preprocessing

This paper presents a global preprocessing methodology for handling uncertainties in operations management. Beyond theoretical considerations on solution feasibility, the methodology provides practitioners with a Monte Carlo simulation-based framework for effective risk management. The main strength of this methodology is being easily applicable to almost any decision problem. Application field of the paper is a real-life workforce management problem for which we propose several mixed integer formulations as well as dedicated solution algorithms. Extensive numerical tests on real-life instances assess the benefit from preprocessing schemes when performed as recommended by our approach, and thus prove its practical relevance.     

A stochastic programming winner determination model for truckload procurement under shipment uncertainty

We propose a two-stage stochastic integer programming model for the winner determination problem (WDP) in combinatorial auctions to hedge the shipper’s risk under shipment uncertainty. The shipper allows bids on combinations of lanes and solves the WDP to determine which carriers are to be awarded lanes. In addition, many other important comprehensive business side constraints are included in the model. We demonstrate the value of the stochastic solution over one obtained by a deterministic model based on using average shipment volumes. Computational results are given that indicate that moderately sized realistic instances can be solved by commercial branch and bound solvers in reasonable time.     

The Electric Traveling Salesman Problem with Time Windows

To minimize greenhouse gas emissions, the logistic field has seen an increasing usage of electric vehicles. The resulting distribution planning problems present new computational challenges.We address a problem, called Electric Traveling Salesman Problem with Time Windows. We propose a mixed integer linear formulation that can solve 20-customer instances in short computing times and a Three-Phase Heuristic algorithm based on General Variable Neighborhood Search and Dynamic Programming.Computational results show that the heuristic algorithm can find the optimal solution in most small-size instances within a tenth of a second and achieves goods solutions in instances with up to 200 customers.     

Exact and heuristic methods to solve the berth allocation problem in bulk ports

In this paper, we study the dynamic hybrid berth allocation problem in bulk ports with the objective to minimize the total service times of the vessels. We propose two exact methods based on mixed integer programming and generalized set partitioning, and a heuristic method based on squeaky wheel optimization, explicitly considering the cargo type on the vessel. The formulations are compared through extensive numerical experiments based on instances inspired from real bulk port data. The results indicate that the set partitioning method and the heuristic method can be used to obtain near-optimal solutions for even larger problem size.     

Liner shipping hub network design in a competitive environment

A mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share—which depends on the service time and transportation cost—by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated Lagrangian method combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.     

Adaptive large neighborhood search heuristics for the vehicle routing problem with stochastic demands and weight-related cost

The vehicle routing problem (VRP) with stochastic demands and weight-related cost is an extension of the VRP. Although some researchers have studied the VRP with either stochastic demands or weight-related cost, the literature on this problem is quite limited. We adopt the a priori optimization to tackle this problem and propose a dynamic programming to compute the expected cost of each route. We develop the adaptive large neighborhood search heuristics equipped with several approximate methods for the problem. To evaluate our heuristics, we generate 84 test instances. Computational results demonstrate the performance of our heuristics and can serve as benchmarks for future researchers.     

Demand-responsive transit circulator service network design

Commuter rail systems are being introduced into many urban areas as an alternative mode to automobiles for commuting trips. It is anticipated that the shift from the auto mode to rail mode can greatly help alleviate traffic congestion in urban road networks. However, the right-of-way of many existing commuter rail systems is usually not ideally located. Since the locations of rail systems were typically chosen long ago to serve the needs of freight customers, the majority of current commuter rail passengers have to take a non-walkable connecting trip to reach their final destinations after departing the most conveniently located rail stations. To make rail a more viable commuting option and thus more competitive to the auto mode, a bus feeder or circulator system is proposed for transporting passengers from their departing rail stations to final work destinations in a seamless transfer manner. The key research question with operating such a bus circulator system is how to optimally determine a bus route and stopping sequence for each circulating tour by using the real-time demand information. In this paper, we name this joint routing and stopping optimization problem the circulator service network design problem, the objective of which is to minimize the total tour cost incurred to bus passengers and operators with respect to minimizing the walk time of each individual bus passenger. A bi-level nonlinear mixed integer programming model is constructed and a tabu search method with different local search strategies and neighborhood evaluation methods is then developed for tackling the circulator service network design problem.     

Tactical berth and yard template design at container transshipment terminals: A column generation based approach

Quay-side berthing congestion is an emerging challenging issue that arises in busy container transshipment terminals and calls for effective management of terminal operations. This paper tackles the berthing congestion problem by introducing a proactive management strategy from the terminal’s perspective that adjusts the calling schedule of feeder vessels in such a way that the quay-side workload distribution in the temporal dimension can be balanced. Such a schedule template design problem is considered simultaneously with another two tactical level decision problems, berth template design (i.e., determining preferred berthing positions for vessels) and yard template design (i.e., allocating storage yard space to transshipment flows). This highly integrated problem is formulated as a set covering model. Heuristic methods based on column generation are developed to obtain near-optimal solutions in an efficient way. Computational experiments on real-world sized test instances demonstrate the efficiency and effectiveness of the proposed approach.     

Optimization of postal express line network under mixed driving pattern of trucks

Details about the movement of trucks on postal express lines are investigated to improve the performances of mail distribution. A mixed driving pattern of trucks is introduced to minimize the transportation cost of a postal express line network with a service level requirement. We formulate this problem as a mixed p meeting depots location with shipment scheduling problem and build a MINLP model. A two-level tabu search procedure based on shipment grouping method is developed. Through a series of computational experiments and sensitivity analysis on different instances, some managerial insights of the network under mixed driving pattern are revealed.