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Publications

Publications by Luís Guimarães

2018

The time window assignment vehicle routing problem with product dependent deliveries

Authors
Neves Moreira, F; da Silva, DP; Guimaraes, L; Amorim, P; Almada Lobo, B;

Publication
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW

Abstract
This paper presents a new formulation for a time window assignment vehicle routing problem where time windows are defined for multiple product segments. This two-stage stochastic optimization problem is solved by means of a fix-and-optimize based matheuristic. The first stage assigns product dependent time windows while the second stage defines delivery schedules. Our approach outperforms a general-purpose solver and achieves an average cost decrease of 5.3% over expected value problem approaches. Furthermore, a sensitivity analysis on three operational models shows that it is possible to obtain significant savings compared to the solutions provided by a large European food retailer.

2019

Solving a large multi-product production-routing problem with delivery time windows

Authors
Neves Moreira, F; Almada Lobo, B; Cordeau, JF; Guimaraes, L; Jans, R;

Publication
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE

Abstract
Even though the joint optimization of sequential activities in supply chains is known to yield significant cost savings, the literature concerning optimization approaches that handle the real-life features of industrial problems is scant. The problem addressed in this work is inspired by industrial contexts where vendor-managed inventory policies are applied. In particular, our study is motivated by a meat producer whose supply chain comprises a single meat processing centre with several production lines and a fleet of vehicles that is used to deliver different products to meat stores spread across the country. A considerable set of characteristics, such as product family setups, perishable products, and delivery time windows, needs to be considered in order to obtain feasible integrated plans. However, the dimensions of the problem make it impossible to be solved exactly by current solution methods. We propose a novel three-phase methodology to tackle a large Production-Routing Problem (PRP) combining realistic features for the first time. In the first phase, we attempt to reduce the size of the original problem by simplifying some dimensions such as the number of products, locations and possible routes. In the second phase, an initial PRP solution is constructed through a problem decomposition comprising several inventory-routing problems and one lot-sizing problem. In the third phase, the initial solution is improved by different mixed-integer programming models which focus on small parts of the original problem and search for improvements in the production, inventory management and transportation costs. Our solution approach is tested both on simpler instances available in the literature and on real-world instances containing additional details, specifically developed for a European company's case study. By considering an integrated approach, we achieve global cost savings of 21.73% compared to the company's solution.

2019

Tackling perishability in multi-level process industries

Authors
Wei, WC; Amorim, P; Guimaraes, L; Almada Lobo, B;

Publication
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH

Abstract
The classical multi-level lot-sizing and scheduling problem formulations for process industries rarely address perishability issues, such as limited shelf lives of intermediate products. In some industries, ignoring this specificity may result in severe losses. In this paper, we start by extending a classical multi-level lot-sizing and scheduling problem formulation (MLGLSP) to incorporate perishability issues. We further demonstrate that with the objective of minimising the total costs (purchasing, inventory and setup), the production plans generated by classical models are often infeasible under a setting with perishable products. The model distinguishes different perishability characteristics of raw materials, intermediates and end products according to various industries. Finally, we provide quantitative insights on the importance of considering perishability for different production settings when solving integrated production planning and scheduling problems.

2014

Annual Distribution Budget in the Beverage Industry: A Case Study

Authors
Guimarães, L; Amorim, P; Sperandio, F; Moreira, F; Lobo, BA;

Publication
Interfaces

Abstract

2021

Improving picking performance at a large retailer warehouse by combining probabilistic simulation, optimization, and discrete-event simulation

Authors
Amorim Lopes, M; Guimaraes, L; Alves, J; Almada Lobo, B;

Publication
INTERNATIONAL TRANSACTIONS IN OPERATIONAL RESEARCH

Abstract
Distribution warehouses are a critical part of supply chains, representing a nonnegligible share of the operating costs. This is especially true for unautomated, labor-intensive warehouses, partially due to time-consuming activities such as picking up items or traveling. Inventory categorization techniques, as well as zone storage assignment policies, may help in improving operations, but may also be short-sighted. This work presents a three-step methodology that uses probabilistic simulation, optimization, and event-based simulation (SOS) to analyze and experiment with layout and storage assignment policies to improve the picking performance. In the first stage, picking performance is estimated under different storage assignment policies and zone configurations using a probabilistic model. In the second stage, a mixed integer optimization model defines the overall warehouse layout by selecting the configuration and storage assignment policy for each zone. Finally, the optimized layout solution is tested under demand uncertainty in the third, final simulation phase, through a discrete-event simulation model. The SOS methodology was validated with three months of operational data from a large retailer's warehouse, successfully illustrating how it may be successfully used for improving the performance of a distribution warehouse.

2021

Product line selection of fast-moving consumer goods *

Authors
Andrade, X; Guimaraes, L; Figueira, G;

Publication
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE

Abstract
The fast-moving consumer goods sector relies on economies of scale. However, its assortments have been overextended as a means of market share appropriation and top-line growth. This paper studies the se-lection of the optimal set of products for fast-moving consumer goods producers to offer, as there is no previous model for product line selection that satisfies the requirements of the sector. Our mixed -integer programming model combines a multi-category attraction model with a capacitated lot-sizing problem, shared setups and safety stock. The multi-category attraction model predicts how the demand for each product responds to changes within the assortment. The capacitated lot-sizing problem allows us to account for the indirect production costs associated with different assortments. As seasonality is prevalent in consumer goods sales, the production plan optimally weights the trade-off between stocking finished goods from a long run with performing shorter runs with additional setups. Finally, the safety stock extension addresses the effect of the demand uncertainty associated with each assortment. With the computational experiments, we assess the value of our approach using data based on a real case. Our findings suggest that the benefits of a tailored approach are at their highest in scenarios typical fast-moving consumer goods industry: when capacity is tight, demand exhibits seasonal patterns and high service levels are required. This also occurs when the firm has a strong competitive position and consumer price-sensitivity is low. By testing the approach in two real-world instances, we show that this decision should not be made based on the current myopic industry practices. Lastly, our approach obtains profits of up to 9.4% higher than the current state-of-the-art models for product line selection.

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