The Multi-period Petrol Station Replenishment Problem: Formulation and Solution Methods

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Abstract

We present a “rich” Petrol Station Replenishment Problem (PSRP) with real-life characteristics that represents the complexities involved in actual operations. The planning is optimised over multiple days and therefore, the new variant can be classified as the Multi-Period Petrol Station Replenishment Problem (MP-PSRP). A Mixed Integer Linear Programming (MILP) formulation is developed and a decomposition heuristic is proposed as a solution algorithm, which is evaluated with a case study from a real-life petrol distributor in Denmark. To determine delivery quantities, the heuristic uses the newly introduced simultaneous dry run inventory policy. A procedure is applied to improve the initial solution. A commercial solver is able to find feasible solutions only for instances with up to 20 stations and 7 days for the MILP model where optimality is guaranteed for instances up to 10 stations and 5 days. The heuristic on the other hand provides feasible solutions for the full case study of 59 stations and 14 days, within a time limit of 2 h.

Original languageEnglish
Title of host publicationComputational Logistics
Subtitle of host publicationProceedings of the 11th International Conference, ICCL 2020
EditorsEduardo Lalla-Ruiz, Martijn Mes, Stefan Voß
Place of PublicationCham, Switzerland
PublisherSpringer
Pages600-615
ISBN (Electronic)978-3-030-59747-4
ISBN (Print)978-3-030-59746-7
DOIs
Publication statusPublished - 2020
Event11th International Conference on Computational Logistics, ICCL 2020 - Enschede, Netherlands
Duration: 28 Sep 202030 Sep 2020

Publication series

NameLecture Notes in Computer Science
Volume12433
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference11th International Conference on Computational Logistics, ICCL 2020
CountryNetherlands
CityEnschede
Period28/09/2030/09/20

Keywords

  • Decomposition heuristic
  • Inventory routing
  • Petrol Station Replenishment
  • Simultaneous dry run inventory policy

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