An application of Special Ordered Sets to a periodic milk collection problem

We present an OR-based approach to support a milk collection problem in a special branch of dairy industry. The annual growth of the sector and the continuous imbalance between milk supply and demand, has urged the sector to look for a different approach to their daily milk collection problem. Specific details of the problem environment (i.e., the continuous production on supply level and the delivery conditions on demand level) gave rise to choose for a short- to medium-term planning approach. The proposed decision support system has to be considered as an efficient tool for generating stable milk collection plans which in turn also serves as an effective starting point for the vehicle routing problem. From a computational point of view it turned out that the application of Special Ordered Sets type 1 (SOS1) was very useful. Although it appears from literature that the computational advantage of SOS1 is restricted to supplementary model conditions, this study shows that these conditions are not necessarily needed.