DVRP with limited supply and variable neighborhood region in refined oil distribution

Limited supply can be an emergent issue in refined oil distribution, which may increase operating cost and decrease gasoline station satisfaction with shortage. Hence, how to devise an optimal distribution scheme is the central problem for oil distribution companies. The main problem with limited su...

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Veröffentlicht in:Annals of operations research 2022-02, Vol.309 (2), p.663-687
Hauptverfasser: Xu, Xiaofeng, Lin, Ziru, Zhu, Jing
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creator Xu, Xiaofeng
Lin, Ziru
Zhu, Jing
description Limited supply can be an emergent issue in refined oil distribution, which may increase operating cost and decrease gasoline station satisfaction with shortage. Hence, how to devise an optimal distribution scheme is the central problem for oil distribution companies. The main problem with limited supply involves: (I) depicting the dynamic efforts on vehicle routing driven by the demand and priority of gasoline stations, and (II) incorporating the efforts into variable distribution region division associated with oil depots. In this paper, we propose a multi-objective optimization model for dynamic vehicle routing problem with limited supply in oil distribution with variable neighborhood region. First, a preliminary multi-stage model for dynamic vehicle routing problem is designed, which takes operating cost, gasoline station satisfaction and priority into consider in the setting of limited supply. Based on the preliminary model, a variable neighborhood region division model is presented for oil depot supply and tanker delivery, in light of Fuzzy C-means algorithm and justifiable granularity principle. Finally, the experimental results show that the dynamic vehicle programming model with variable neighborhood performs better than other comparable scenarios at cost savings and satisfaction improvement.
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subjects Algorithms
Business and Management
Combinatorics
Cost control
Distribution
Gasoline
Logistics
Mathematical optimization
Methods
Multiple objective analysis
Neighborhoods
Operating costs
Operations research
Operations Research/Decision Theory
Optimization
Petroleum
Route planning
S.I.: Data-Driven OR in Transportation and Logistics
Theory of Computation
Vehicle routing
title DVRP with limited supply and variable neighborhood region in refined oil distribution
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