Fair transfer price and inventory holding policies in two-enterprise supply chains

A key issue in supply chain optimisation involving multiple enterprises is the determination of policies that optimise the performance of the supply chain as a whole while ensuring adequate rewards for each participant.In this paper, we present a mathematical programming formulation for fair, optimised profit distribution between echelons in a general multi-enterprise supply chain. The proposed formulation is based on an approach applying the Nash bargaining solution for finding optimal multi-partner profit levels subject to given minimum echelon profit requirements.The overall problem is first formulated as a mixed integer non-linear programming (MINLP) model. A spatial and binary variable branch-and-bound algorithm is then applied to the above problem based on exact and approximate linearisations of the bilinear terms involved in the model, while at each node of the search tree, a mixed integer linear programming (MILP) problem is solved. The solution comprises inter-firm transfer prices, production and inventory levels, flows of products between echelons, and sales profiles.The applicability of the proposed approach is demonstrated by a number of illustrative examples based on industrial processes.     

Matheuristic for the decentralized factories scheduling problem

In this study, a novel mixed integer linear programming (MILP) model is developed for the decentralized factories scheduling problem, where a set of transporters is used for shipping goods among parallel factories to minimize the production costs over all of the factories. Due to its typical features, such as multiple heterogeneous factories and transportation times, this problem is extremely difficult to solve, especially for large-scale problems. In order to address this difficulty, the main aim of this study is to develop a new solution algorithm based on the interoperation of metaheuristics and mathematical programming techniques to minimize the production costs for jobs. The algorithm comprises an electromagnetism-like algorithm and variable neighborhood search. In this hybridization based on MILP relaxation, the guiding principle involves the ordering of neighborhood structures. The results obtained by the proposed algorithm and MILP are analyzed and compared for various test problems.     

Frequency optimization in public transportation systems: Formulation and metaheuristic approach

We study the transit frequency optimization problem, which aims to determine the time interval between subsequent buses for a set of public transportation lines given by their itineraries, i.e., sequences of stops and street sections. The solution should satisfy a given origin–destination demand and a constraint on the available fleet of buses. We propose a new mixed integer linear programming (MILP) formulation for an already existing model, originally formulated as a nonlinear bilevel one. The proposed formulation is able to solve to optimality real small-sized instances of the problem using MILP techniques. For solving larger instances we propose a metaheuristic which accuracy is estimated by comparing against exact results (when possible). Both exact and approximated approaches are tested by using existing cases, including a real one related to a small-city which public transportation system comprises 13 lines. The magnitude of the improvement of that system obtained by applying the proposed methodologies, is comparable with the improvements reported in the literature, related to other real systems. Also, we investigate the applicability of the metaheuristic to a larger-sized real case, comprising more than 130 lines.     

Group-shop scheduling with sequence-dependent set-up and transportation times

This paper considers a group-shop scheduling problem (GSSP) with sequence-dependent set-up times (SDSTs) and transportation times. The GSSP provides a general formulation including the job-shop and the open-shop scheduling problems. The consideration of set-up and transportation times is among the most realistic assumptions made in the field of scheduling. In this paper, we study the GSSP with transportation and anticipatory SDSTs, where jobs are released at different times and there are several transporters to carry jobs. The objective is to find a job schedule that minimizes the makespan, that is, the time at which all jobs are completed and transported to the warehouse (or to the customer). The problem is formulated as a disjunctive programming problem and then prepared in a form of mixed integer linear programming (MILP). Due to the non-deterministic polynomial-time hardness (NP-hardness) of the GSSP, large instances cannot be optimally solved in a reasonable amount of time. Therefore, a genetic algorithm (GA) hybridized with an active schedule generator is proposed to tackle large-sized instances. Both Baldwinian and Lamarckian versions of the proposed hybrid algorithm are then implemented and evaluated through computational experiments.     

A new robust mixed integer-valued model in DEA

The mixed integer linear programming (MILP) models are proposed to estimate the performance of decision making units (DMUs) including both integer and real values in data envelopment analysis (DEA). There are several studies to propose MILPs in the literature of DEA; however, they have some major shortcomings unfortunately. This study firstly mentioned the shortcomings in the previous researches and secondly suggests a robust MILP based on the Kourosh and Arash Method (KAM). The proposed linear model, integer-KAM (IKAM), has almost all capabilities of the linear KAM and significantly removes the shortcomings in the current MILPs. For instance, IKAM benchmarks and ranks all technically efficient and inefficient DMUs at the same time. It detects outliers, and estimates the production frontier significantly. A numerical example of 39 Spanish airports with four integer inputs and three outputs including two integer values and a real value also represents the validity of the statements.     

A hybrid constraint programming approach to?the?log-truck scheduling problem

Scheduling problems in the forest industry have received significant attention in the recent years and have contributed many challenging applications for optimization technologies. This paper proposes a solution method based on constraint programming and mathematical programming for a log-truck scheduling problem. The problem consists of scheduling the transportation of logs between forest areas and woodmills, as well as routing the fleet of vehicles to satisfy these transportation requests. The objective is to minimize the total cost of the non-productive activities such as the waiting time of trucks and forest log-loaders and the empty driven distance of vehicles. We propose a constraint programming model to address the combined scheduling and routing problem and an integer programming model to deal with the optimization of deadheads. Both of these models are combined through the exchange of global constraints. Finally the whole approach is validated on real industrial data.     

混合整数规划求解多联票据印刷过程中的生产调度问题

多联票据的印刷过程包括排版、单联印刷和多联配页与装订三个过程。该过程是柔性的流水生产线与装配混合的生产系统。本文研究了该系统中的票据印刷生产调度问题,目标是最小化所有产品的最大完成时间（Makespan）。该问题到目前为止还没有人研究,本文首先建立了该问题的混合整数规划模型,然后提出了该模型的求解方法,并给出了该问题的下界。最后的量化示例和算例试验表明本文的模型是有效的。     

Optimal periodic scheduling of multipurpose batch plants

A rigorous mathematical programming framework for the scheduling of multipurpose batch plants operated in a cyclic mode is presented. The proposed formulation can deal with batch operations described by complex processing networks, involving shared intermediates, material recycles, and multiple processing routes to the same end-product or intermediate. Batch aggregation and splitting are also allowed. The formulation permits considerable flexibility in the utilisation of processing equipment and storage capacity, and accommodates problems with limited availability of utilities. The scheduling problem is formulated as a large mixed integer linear program (MILP). For a given cycle time, it is shown that it is sufficient for the formulation to characterize a single cycle of the periodic schedule despite the existence of tasks that span two successive cycles. The optimal cycle time is determined by solving a sequence of fixed cycle time problems. The MILP is solved by a branch-and-bound algorithm modified so as to avoid exploring branches that are cyclic permutations of others already fathomed. The resulting implementation permits the solution of problems of realistic size within reasonable computational effort. Several examples are used to illustrate the applicability of the algorithm.     

A branch-and-price algorithm to solve the integrated berth allocation and yard assignment problem in bulk ports

In this research, two crucial optimization problems of berth allocation and yard assignment in the context of bulk ports are studied. We discuss how these problems are interrelated and can be combined and solved as a single large scale optimization problem. More importantly we highlight the differences in operations between bulk ports and container terminals which highlights the need to devise specific solutions for bulk ports. The objective is to minimize the total service time of vessels berthing at the port. We propose an exact solution algorithm based on a branch and price framework to solve the integrated problem. In the proposed model, the master problem is formulated as a set-partitioning problem, and subproblems to identify columns with negative reduced costs are solved using mixed integer programming. To obtain sub-optimal solutions quickly, a metaheuristic approach based on critical-shaking neighborhood search is presented. The proposed algorithms are tested and validated through numerical experiments based on instances inspired from real bulk port data. The results indicate that the algorithms can be successfully used to solve instances containing up to 40 vessels within reasonable computational time.     

A global MILP model for FMS scheduling

Flexible manufacturing systems (FMS) require intelligent scheduling strategies to achieve their principal benefit — combining high flexibility with high productivity. A mixed-integer linear programming model (MILP) is presented here for FMS scheduling. The model takes a global view of the problem and specifically takes into account constraints on storage and transportation. Both of these constrained resources are critical for practical FMS scheduling problems and are difficult to model. The MILP model is explained and justified and its complexity is discussed. Two heuristic procedures are developed, based on an analysis of the global MILP model. Computational results are presented comparing the performance of the different solution strategies. The development of iterative global heuristics based on mathematical programming formulations is advocated for a wide class of FMS scheduling problems.     

Multi-objective open shop scheduling by considering human error and preventive maintenance

This study presents an open shop scheduling model by considering human error and preventive maintenance. The proposed mathematical model takes into account conflicting objective functions including makespan, human error and machine availability. In order to find the optimum scheduling, human error, maintenance and production factors are considered, simultaneously. Human error is measured by Human Error Assessment and Reduction Technique (HEART). Three metaheuristic methods including non-dominated sorting genetic algorithm-II (NSGA-II), multi-objective particle swarm optimization (MOPSO) and strength Pareto evolutionary algorithm II (SPEA-II) are developed to find near-optimal solution. The Taguchi method is applied by adjusting parameters of metaheuristic algorithms. Several illustrative examples and a real case study (auto spare parts manufacturer) are applied to show the applicability of the multi-objective mixed integer nonlinear programming model. The proposed approach of this study may be used for similar open shop problems with minor modifications.     

Regulation of Overlaps in Technology Development Activities

In this paper, we present an algorithm for the solution of multiparametric mixed integer linear programming (mp-MILP) problems involving (i) 0-1 integer variables, and, (ii) more than one parameter, bounded between lower and upper bounds, present on the right hand side (RHS) of constraints. The solution is approached by decomposing the mp-MILP into two subproblems and then iterating between them. The first subproblem is obtained by fixing integer variables, resulting in a multiparametric linear programming (mp-LP) problem, whereas the second subproblem is formulated as a mixed integer linear programming (MILP) problem by relaxing the parameters as variables.     

Mathematical programming based heuristics for the 0–1 MIP: a survey

The 0–1 mixed integer programming problem is used for modeling many combinatorial problems, ranging from logical design to scheduling and routing as well as encompassing graph theory models for resource allocation and financial planning. This paper provides a survey of heuristics based on mathematical programming for solving 0–1 mixed integer programs (MIP). More precisely, we focus on the stand-alone heuristics for 0–1 MIP as well as those heuristics that use linear programming techniques or solve a series of linear programming models or reduced problems, deduced from the initial one, in order to produce a high quality solution of a considered problem. Our emphasis will be on how mathematical programming techniques can be used for approximate problem solving, rather than on comparing performances of heuristics.     

Twenty years of linear programming based portfolio optimization

Markowitz formulated the portfolio optimization problem through two criteria: the expected return and the risk, as a measure of the variability of the return. The classical Markowitz model uses the variance as the risk measure and is a quadratic programming problem. Many attempts have been made to linearize the portfolio optimization problem. Several different risk measures have been proposed which are computationally attractive as (for discrete random variables) they give rise to linear programming (LP) problems. About twenty years ago, the mean absolute deviation (MAD) model drew a lot of attention resulting in much research and speeding up development of other LP models. Further, the LP models based on the conditional value at risk (CVaR) have a great impact on new developments in portfolio optimization during the first decade of the 21st century. The LP solvability may become relevant for real-life decisions when portfolios have to meet side constraints and take into account transaction costs or when large size instances have to be solved. In this paper we review the variety of LP solvable portfolio optimization models presented in the literature, the real features that have been modeled and the solution approaches to the resulting models, in most of the cases mixed integer linear programming (MILP) models. We also discuss the impact of the inclusion of the real features.     

Surgical case scheduling as a generalized job shop scheduling problem

Surgical case scheduling allocates hospital resources to individual surgical cases and decides on the time to perform the surgeries. This task plays a decisive role in utilizing hospital resources efficiently while ensuring quality of care for patients. This paper proposes a new surgical case scheduling approach which uses a novel extension of the Job Shop scheduling problem called multi-mode blocking job shop (MMBJS). It formulates the MMBJS as a mixed integer linear programming (MILP) problem and discusses the use of the MMBJS model for scheduling elective and add-on cases. The model is illustrated by a detailed example, and preliminary computational experiments with the CPLEX solver on practical-sized instances are reported.     

Mixed Integer Linear Programming in Process Scheduling: Modeling,Algorithms, and Applications

This paper reviews the advances of mixed-integer linear programming (MILP) based approaches for the scheduling of chemical processing systems. We focus on the short-term scheduling of general network represented processes. First, the various mathematical models that have been proposed in the literature are classified mainly based on the time representation. Discrete-time and continuous-time models are presented along with their strengths and limitations. Several classes of approaches for improving the computational efficiency in the solution of MILP problems are discussed. Furthermore, a summary of computational experiences and applications is provided. The paper concludes with perspectives on future research directions for MILP based process scheduling technologies.     

Static target search path planning optimization with heterogeneous agents

Disruptions in airline operations can result in infeasibilities in aircraft and passenger schedules. Airlines typically recover aircraft schedules and disruptions in passenger itineraries sequentially. However, passengers are severely affected by disruptions and recovery decisions. In this paper, we present a mathematical formulation for the integrated aircraft and passenger recovery problem that considers aircraft and passenger related costs simultaneously. Using the superimposition of aircraft and passenger itinerary networks, passengers are explicitly modeled in order to use realistic passenger related costs. In addition to the common routing recovery actions, we integrate several passenger recovery actions and cruise speed control in our solution approach. Cruise speed control is a very beneficial action for mitigating delays. On the other hand, it adds complexity to the problem due to the nonlinearity in fuel cost function. The problem is formulated as a mixed integer nonlinear programming (MINLP) model. We show that the problem can be reformulated as conic quadratic mixed integer programming (CQMIP) problem which can be solved with commercial optimization software such as IBM ILOG CPLEX. Our computational experiments have shown that we could handle several simultaneous disruptions optimally on a four-hub network of a major U.S. airline within less than a minute on the average. We conclude that proposed approach is able to find optimal tradeoff between operating and passenger-related costs in real time.     

Cut Generation Algorithm for the Discrete Competitive Facility Location Problem

A competitive facility location model formulated as a bilevel programming problem is considered. A new approach to the construction of estimating problems for bilevel competitive location models is proposed. An iterative algorithm for solving a series of mixed integer programming problems to obtain a pessimistic optimal solution of the model under consideration is suggested.     

Makespan minimization for parallel machines scheduling with multiple availability constraints

The problem of makespan minimization for parallel machines scheduling with multiple planned nonavailability periods in the case of resumable jobs is considered. In the current state of the literature, there is a limited number of models and algorithms dealing with this problem and only for very small problem size, and nonavailability limited to some machines. The problem is first formulated as a mixed integer linear programming model and optimally solved using CPLEX for small to moderately large size problems with multiple availability constraints on all machines. An implicit enumeration algorithm using the lexicographic order is then designed to solve large-scale problems. Numerical results are obtained for several experiments and they show the validity and performance improvements procured by both the MILP model and the new enumeration algorithm.