Towards efficient solutions for vehicle routing problems for oxygen supply chains

Abstract

This work investigates the integrated production–inventory-routing problem (PIRP) for liquid oxygen supply chains consisting of multiple plants, customers, and heterogeneous vehicles. Solving such a problem is challenging, especially when dealing with large-scale industrial scales. A two-level procedure is adopted that determines decisions regarding production, inventory, and product allocation by simplifying the routing component in the first level. Then, the routing decisions are considered in the lower level for which 3-index mathematical programming formulations are presented. To address the combinatorial complexity of the lower-level decisions, we propose alternative multi-trip heterogeneous vehicle routing problem (MTHVRP) formulations together with a column generation-based solution strategy. A set of test instances and a real-world case study demonstrate the applicability and performance of the formulations and solution methods.