A dynamic multicommodity network flow problem for logistics networks

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Abstract

We present a dynamic multicommodity minimum cost network flow problem with storage at the nodes and optimal supply for modeling operations within a logistics network. The model can be used to evaluate critical business decisions such as the amount of required resources for storage transportation as well as optimal supply policies. A generator for test instances was written in order to evaluate the performance of the different solution strategies. Using a number of differently sized randomly generated problem instances we compare the execution time and the memory demand of two methods for solving the problem. The first is solving the whole problem formulation directly using general purpose linear programming solvers implemented in IBM Ilog CPLEX. In the second approach we attempt to split the model into two parts and link them together in an optimization network. We analyze the quality of the link and propose possibilities to improve the two step approach through input parameter variation.

Original languageEnglish
Title of host publication27th European Modeling and Simulation Symposium, EMSS 2015
EditorsMichael Affenzeller, Francesco Longo, Lin Zhang, Agostino G. Bruzzone, Yuri Merkuryev, Emilio Jimenez
PublisherDIME UNIVERSITY OF GENOA
Pages301-306
Number of pages6
ISBN (Electronic)9788897999485
Publication statusPublished - 2015
Event27th European Modeling and Simulation Symposium, EMSS 2015 - Bergeggi, Italy
Duration: 21 Sep 201523 Sep 2015

Publication series

Name27th European Modeling and Simulation Symposium, EMSS 2015

Conference

Conference27th European Modeling and Simulation Symposium, EMSS 2015
Country/TerritoryItaly
CityBergeggi
Period21.09.201523.09.2015

Keywords

  • Dynamic Lot Sizing Problem
  • Dynamic networks
  • Minimum cost flow problem
  • Multicommodity flows

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