Simulation-based heuristic method for container supply chain network optimization

•We propose a novel idea that considers optimization problem of multi-echelon container supply chain network.•We develop a mixed integer programming model to minimize the total container supply chain service cost.•We propose a simulation-based heuristic method to efficiently solve the problem. With...

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Published inAdvanced engineering informatics Vol. 29; no. 3; pp. 339 - 354
Main Authors He, Junliang, Huang, Youfang, Chang, Daofang
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.08.2015
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Abstract •We propose a novel idea that considers optimization problem of multi-echelon container supply chain network.•We develop a mixed integer programming model to minimize the total container supply chain service cost.•We propose a simulation-based heuristic method to efficiently solve the problem. With the emerging of free trade zones (FTZs) in the world, the service level of container supply chain plays an important role in the efficiency, quality and cost of the world trade. The performance of container supply chain network directly impacts its service level. Therefore, it is imperative to seek an appropriate method to optimize the container supply chain network architecture. This paper deals with the modeling and optimization problem of multi-echelon container supply chain network (MCSCN). The problem is formulated as a mixed integer programming model (MIP), where the objective is subject to the minimization of the total supply chain service cost. Since the problem is well known to be NP-hard, a novel simulation-based heuristic method is proposed to solving it, where the heuristic is used for searching near-optimal solutions, and the simulation is used for evaluating solutions and repairing unfeasible solutions. The heuristic algorithm integrates genetic algorithm (GA) and particle swarm optimization (PSO) algorithm, where the GA is used for global search and the PSO is used for local search. Finally, computational experiments are conducted to validate the performance of the proposed method and give some managerial implications.
AbstractList •We propose a novel idea that considers optimization problem of multi-echelon container supply chain network.•We develop a mixed integer programming model to minimize the total container supply chain service cost.•We propose a simulation-based heuristic method to efficiently solve the problem. With the emerging of free trade zones (FTZs) in the world, the service level of container supply chain plays an important role in the efficiency, quality and cost of the world trade. The performance of container supply chain network directly impacts its service level. Therefore, it is imperative to seek an appropriate method to optimize the container supply chain network architecture. This paper deals with the modeling and optimization problem of multi-echelon container supply chain network (MCSCN). The problem is formulated as a mixed integer programming model (MIP), where the objective is subject to the minimization of the total supply chain service cost. Since the problem is well known to be NP-hard, a novel simulation-based heuristic method is proposed to solving it, where the heuristic is used for searching near-optimal solutions, and the simulation is used for evaluating solutions and repairing unfeasible solutions. The heuristic algorithm integrates genetic algorithm (GA) and particle swarm optimization (PSO) algorithm, where the GA is used for global search and the PSO is used for local search. Finally, computational experiments are conducted to validate the performance of the proposed method and give some managerial implications.
With the emerging of free trade zones (FTZs) in the world, the service level of container supply chain plays an important role in the efficiency, quality and cost of the world trade. The performance of container supply chain network directly impacts its service level. Therefore, it is imperative to seek an appropriate method to optimize the container supply chain network architecture. This paper deals with the modeling and optimization problem of multi-echelon container supply chain network (MCSCN). The problem is formulated as a mixed integer programming model (MIP), where the objective is subject to the minimization of the total supply chain service cost. Since the problem is well known to be NP-hard, a novel simulation-based heuristic method is proposed to solving it, where the heuristic is used for searching near-optimal solutions, and the simulation is used for evaluating solutions and repairing unfeasible solutions. The heuristic algorithm integrates genetic algorithm (GA) and particle swarm optimization (PSO) algorithm, where the GA is used for global search and the PSO is used for local search. Finally, computational experiments are conducted to validate the performance of the proposed method and give some managerial implications.
Author Chang, Daofang
He, Junliang
Huang, Youfang
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Keywords Network architecture
Container supply chain
Simulation-based heuristic method
Genetic algorithm
Particle swarm optimization
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Snippet •We propose a novel idea that considers optimization problem of multi-echelon container supply chain network.•We develop a mixed integer programming model to...
With the emerging of free trade zones (FTZs) in the world, the service level of container supply chain plays an important role in the efficiency, quality and...
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StartPage 339
SubjectTerms Computer simulation
Container supply chain
Containers
Genetic algorithm
Genetic algorithms
Heuristic methods
Mathematical models
Network architecture
Networks
Particle swarm optimization
Searching
Simulation-based heuristic method
Supply chains
Title Simulation-based heuristic method for container supply chain network optimization
URI https://dx.doi.org/10.1016/j.aei.2014.08.001
https://www.proquest.com/docview/1744698421
Volume 29
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