Solving a production-routing problem with price-dependent demand using an outer approximation method

Abstract

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Rolling horizon-based heuristics for solving a production-routing problem with price-dependent demand

“…We contribute to the literature by developing efficient rolling horizon-based heuristics to provide near-optimal solutions for the PRP-PD. Our computational results show that our proposed heuristics outperform the algorithms developed by Torkaman et al (2020) in the computational time aspect with little to no reduction in solution quality. This computational improvement is significant for large problem instances.…”

“…The problem we study is known in the literature as the productionrouting problem with price-dependent demand (PRP-PD), first proposed by Torkaman et al (2020). The PRP-PD considers a centralized setting in which a manufacturer serves a number of retailers with unique price-dependent demand functions for a single product in a Specifically, the demand function in our study is convex, continuous, differentiable, and strictly decreasing in price.…”

“…Hence, the solution techniques proposed for the PRP do not directly apply to PRP-PD. Torkaman et al (2020) have developed outer approximation (OA) algorithms to solve the PRP-PD optimally as well as approximately. Although their algorithms outperform the commercial solvers, the required computational time to solve the large instance problems is still long.…”

Sustainable Pricing-Production-Workforce-Routing Problem for Perishable Products by Considering Demand Uncertainty; A Case Study from the Dairy Industry

“…Ultimately, both assumptions of perishability and demand uncertainty were tackled, for the fi rst time, in an integrated dynamic pricing-production problem by Duan, Cao, and Huo (2018). Torkaman et al (2020) tackled the PRP with a general differentiable, continuous, and convex function for price-dependent demands. Since their mathematical model, including the objective function and some of the constraints, was nonlinear, the common solution approach in PRPs could not be applied directly to the proposed problem.…”

Beyond S&OP Implementation: A maturity model and meta-framework for assessing and managing evolution paths

“…and Scheduling (APS)Sato and Tsai (2004),Chen and Chen (2005),Feng et al (2008),Thomas et al (2008),Rudberg and Thulin (2009),Chen-Ritzo et al (2010),Ivert and Jonsson (2010),Figueiredo et al (2011), Feng et al (2011,Oliva and Watson (2011),Olhager and Johansson (2012),Wang et al (2012),Feng et al (2013),Jonsson et al (2013),Ivert and Jonsson (2014),Li and Thorstenson (2014),Rappold and Yoho (2014),Calfa et al (2015),Goh and Eldridge (2015),Jonsson and Ivert (2015),Taşkin et al (2015),Albrecht and Steinrücke (2017),Lalami et al (2017),Nemati et al (2017),Darmawan et al (2018),Dreyer et al (2018),Nemati and Alavidoost (2018),Albrecht and Steinrücke (2020),Alfieri et al (2020),Torkaman et al (2020),Wolfshorndl et al (2020) …”