Recursive Partitioning and Batching for Network Design with Service Time Guarantees at Massive Scale

Motivated by the parcel delivery industry, we study a network design problem with service time guarantees at industrial scale. This tactical service network design problem determines primary paths and delivery schedules for commodities to minimize transportation and handling costs while ensuring committed service times. To construct a solution for a real-world instance with over 1,000 … Read more

Strategic design of collection and delivery point networks for urban parcel distribution

Collection and delivery points (CDPs) allow logistics operators to consolidate multiple customer request deliveries on a single vehicle stop, reducing distribution costs. However, for customers to adopt CDPs, they must be willing to travel to a nearby CDP to pick up their parcels. This choice depends on personal preferences, the proximity of CDPs, and economic … Read more

Strengthening Dual Bounds for Multicommodity Capacitated Network Design with Unsplittable Flow Constraints

Multicommodity capacitated network design (MCND) models can be used to optimize the consolidation of shipments within e-commerce fulfillment networks. In practice, fulfillment networks require that shipments with the same origin and destination follow the same transfer path. This unsplittable flow requirement complicates the MCND problem, requiring integer programming (IP) formulations with binary variables replacing continuous … Read more

Reduction from the partition problem: Dynamic lot sizing problem with polynomial complexity

In this note, we polynomially reduce an instance of the partition problem to a dynamic lot sizing problem, and show that solving the latter problem solves the former problem.  By solving the dynamic programming formulation of the dynamic lot sizing problem, we show that the instance of the partition problem can be solved with pseudo-polynomial … Read more

Neural Embedded Mixed-Integer Optimization for Location-Routing Problems

We present a novel framework that combines machine learning with mixed-integer optimization to solve the Capacitated Location-Routing Problem (CLRP). The CLRP is a classical yet NP-hard problem that integrates strategic facility location with operational vehicle routing decisions, aiming to simultaneously minimize both fixed and variable costs. The proposed method first trains a permutationally invariant neural … Read more

Multistage Stochastic Facility Location under Facility Disruption Uncertainty

We consider a multistage variant of the classical stochastic capacitated facility location problem under facility disruption uncertainty. Two solution algorithms for this problem class are presented: (1) stochastic dual dynamic integer programming (SDDiP), the state-of-the-art algorithm for solving multistage stochastic integer programs, and (2) shadow price approximation (SPA), an algorithm utilizing trained parameters of the … Read more

Solving the three-dimensional open-dimension rectangular packing problem: a constraint programming model

In this paper, we address the three-dimensional open-dimension rectangular packing problem (3D-ODRPP). This problem addresses a set of rectangular boxes of given dimensions and a rectangular container of open dimensions. The objective is to pack all boxes orthogonally into the container while minimizing the container volume. Real-world applications of the 3D-ODRPP arise in production systems … Read more

Store Fulfillment with Autonomous Mobile Robots and In-Store Customers

Omnichannel services, such as buy-online-pickup-in-store, curbside pickup, and ship-from-store, have shifted the order-picking tasks previously completed by in-store customers doing their own shopping to the retailer’s responsibility. To fulfill these orders, many retailers have deployed a store fulfillment strategy, where online orders are picked from brick-and-mortar retail store shelves. We focus on the design of … Read more

Tactical workforce sizing and scheduling decisions for last-mile delivery

We tackle the problems of workforce sizing and shift scheduling of a logistic operator delivering parcels in the last-mile segment of the supply chain. Our working hypothesis is that the relevant decisions are affected by two main trade-offs: workforce size and shift stability. A large workforce is able to deal with demand fluctuations but incurs … Read more