An iterative fixing variable heuristic for solving a combined blending and distribution planning problem

  • Authors:

  • Bilge Bilgen

  • Affiliations:

  • Dokuz Eylül University, Department of Industrial Engineering, Izmir, Turkey

  • Venue:
  • NMA'06 Proceedings of the 6th international conference on Numerical methods and applications
  • Year:
  • 2006

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Abstract

In this paper, we consider a combined blending and distribution planning problem faced by a company that manages wheat supply chain. The distribution network consists of loading ports, and customers. Products are loaded on bulk vessels of various capacity levels for delivery to overseas customers. The purpose of this model is simultaneous planning of the assignment of an appropriate type and number of vessels to each customer order, the planning of quantities blended at ports, loaded from ports, and transported from loading ports to customers. We develop a mixed integer programming (MIP) model and provide a heuristic solution procedure for this distribution planning problem. An iterative fixing variable heuristic algorithm is used to assure that acceptable solutions are obtained quickly. The effectiveness of the proposed heuristic algorithm is evaluated by computational experiment.