A Hybrid Approach to the Optimization of Multiechelon Systems

Abstract

In freight transportation there are two main distribution strategies: direct shipping and multiechelon distribution. In the direct shipping, vehicles, starting from a depot, bring their freight directly to the destination, while in the multiechelon systems, freight is delivered from the depot to the customers through an intermediate points. Multiechelon systems are particularly useful for logistic issues in a competitive environment. The paper presents a concept and application of a hybrid approach to modeling and optimization of the Multi-Echelon Capacitated Vehicle Routing Problem. Two ways of mathematical programming (MP) and constraint logic programming (CLP) are integrated in one environment. The strengths of MP and CLP in which constraints are treated in a different way and different methods are implemented and combined to use the strengths of both. The proposed approach is particularly important for the discrete decision models with an objective function and many discrete decision variables added up in multiple constraints. An implementation of hybrid approach in theECLiPSesystem using Eplex library is presented. The Two-Echelon Capacitated Vehicle Routing Problem (2E-CVRP) and its variants are shown as an illustrative example of the hybrid approach. The presented hybrid approach will be compared with classical mathematical programming on the same benchmark data sets.