Journal of Industrial and Systems Engineering

Journal of Industrial and Systems Engineering

Optimization of Multi-Commodity Routing with Dynamic Warehouse Management, Vehicle Ownership Strategies, and Congestion Control

Document Type : Research Paper

Authors
Sina Rashvand 1
Kimars Fathi Hafshjani 2
Mohammad Ali Afshar Kazemi 3
1 Department of Industrial Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 Department of Industrial Management, Faculty of Management, South Tehran Branch, Islamic Azad University, Tehran, Iran
3 Department of Industrial Management, Faculty of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
Abstract
This study optimizes the multi-commodity routing problem in a constrained network, integrating dynamic warehouse management, diverse vehicle ownership options, and congestion management. The model addresses the efficient routing of goods with limited vehicle and warehouse capacities, enabling the addition or removal of warehouses based on demand fluctuations. It incorporates a hybrid fleet strategy, balancing owned and outsourced vehicles to minimize costs while ensuring flexibility. The model also considers network congestion, optimizing routes and schedules to mitigate delays. This approach provides a comprehensive solution for cost-effective and responsive supply chain logistics. In this research, the complexity of the mathematical model and its multi-objective nature led to the use of the epsilon constraint method and the MOGWO and NSGA II algorithms in the model. Solving the model using the mentioned methods showed that the total costs increased with the improvement of the second objective function. This problem has been due to the use of vehicles with higher speeds and higher prices, and also by reducing the risk of transporting products, the total costs have increased again.
Keywords
location-routing
uncertainty
fuzzy programming
M/M/c/K model
meta-heuristic algorithms
Subjects
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Journal of Industrial and Systems Engineering
Volume 16, Issue 1 - Serial Number 1
Winter 2024
Pages 116-131

  • Receive Date 20 August 2023
  • Revise Date 16 October 2023
  • Accept Date 11 November 2023