Effective Heuristics for Multiproduct Partial Shipment Models

Authors:
Milind Dawande;Srinagesh Gavirneni;Sridhar Tayur
Affiliations:
School of Management, University of Texas at Dallas, Mail Station SM 30, Richardson, Texas 75083-0688;Johnson Graduate School of Management, Cornell University, Ithaca, New York;Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania
Venue:
Operations Research
Year:
2006

Citing 2
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Knapsack problems: algorithms and computer implementations

Knapsack problems: algorithms and computer implementations
Exact and Heuristic Solutions for a Shipment Problem with Given Frequencies

Management Science

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Abstract

Motivated by real applications, we consider the problem of shipping products to multiple customers from limited inventory. After formulating the optimization problems under different restrictions on partial shipments, we find that commercially available packages, applied directly, are unsatisfactory, as are simple greedy approaches. We develop a scheme of heuristics that enables the user to select a good balance between computation time and effectiveness. A detailed computational study of one- and two-period industrial-sized problems indicates that these heuristics are computationally practical and generate solutions that are, on average, within 34 of the optimum.