IEM MDP: Colloquium, Tom Venema

Title

A simulation-based optimization framework for improving the outbound logistics of real-world transportation systems

Panel

1st supervisor: Dr. A. (Alexander) Hübl

2nd supervisor: Dr. A.J. (Albert) Bosch

Company supervisor: Mr. M. (Mart) Busger op Vollenbroek (CAPE Groep B.V.)

Abstract

Recent technological advances lead to a great collection of new possibilities for new logistic companies to optimize their scheduling operations. A key issue is finding the optimal set of routes for the vehicles to traverse such that the total driven kilometres are minimized, which is known as the vehicle routing problem (VRP). Many variations of the VRPs are solved in literature, but the validation in the real world is often neglected. Therefore, this research presents the results of a simulation-based optimization (SBO) approach to solve the capacitated vehicle routing problem with time windows (VRPTW) using a discrete event simulator (DES) and the simulated annealing algorithm. The DES is used to validate the solution's performance by mimicking the real world, using real-world stochastics such as travelling time and service time. The resulting simulation-based optimization framework is applied to the agricultural transportation company Farm Trans to optimize its outbound logistics. Here, optimization means finding the optimal set of routes for the vehicles to traverse such that the total distance travelled is minimized without harming the current service level of the company. Multiple scenarios are studied, and the generated key performance indicators are compared with historical data to validate the performance of the simulation-based optimization framework. The most important result is that amount of kilometres driven can be reduced on average to 90$\%$ of the current operations. Moreover, the number of outgoing trips needed to perform the deliveries can be reduced, implying that fewer vehicles have to be used.

Additional Info.

Please confirm your participation to Betsy van Rooij-Oldenboom (j.e.van.rooijoldenboom@rug.nl). She will put your name on the attendance list (RED BOOK) after the colloquium is finished.