DocumentCode :
2367662
Title :
Oil product transportation with combinatorial auctions
Author :
Zhen, Feng
Author_Institution :
Dept. of Manage. Sci., City Univ. of Hong Kong, Hong Kong, China
fYear :
2011
fDate :
25-27 June 2011
Firstpage :
1
Lastpage :
6
Abstract :
This paper discusses a new practical variant of the vehicle routing problem with time windows (VRPTW) that incorporates a combinatorial auction (CA) problem, which originated from the regional transportation planning of oil products for a prominent Chinese petroleum company. During peak seasons, the petroleum company needs to outsource some transportation projects to third party logistics (3PL) providers because the demand for oil products and the corresponding transportation requirements at this time are considerably higher. To minimize the total cost of oil product transportation from the depots to the oil stations, we integrate the CA and the VRPTW problems into a single problem, called the combinatorial auction and vehicle routing problem with time windows. The problem is formulated into a mixed-integer programming model and shown to be NP-hard. We devise a heuristic to separate all the stations into two types (whether to outsource to 3PL companies) according to distance. We then obtain an initial solution by separately solving the CA and VRPTW problems. To improve the initial solution, we design and test multiple heuristic operators to interactively solve the CA and VRPTW. Experiments show that good quality solutions are achieved for problem cases of practical scope.
Keywords :
combinatorial mathematics; goods distribution; integer programming; logistics; petroleum industry; planning; Chinese petroleum company; NP-hard problem; combinatorial auction; mixed integer programming model; oil product transportation; regional transportation planning; third party logistics provider; vehicle routing problem with time windows; Algorithm design and analysis; Companies; Logistics; Outsourcing; Petroleum; Vehicles; Combinatorial auction problem; Oil products transportation; Vehicle routing problem with time windows;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2011 8th International Conference on
Conference_Location :
Tianjin
ISSN :
2161-1890
Print_ISBN :
978-1-61284-310-0
Type :
conf
DOI :
10.1109/ICSSSM.2011.5959368
Filename :
5959368
Link To Document :
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