Workshop on Advances in Supply Chain Management

Date: October 4th, 10:00-12:00hrs
Venue: Room H10-31
Organizer: Wilco van den Heuvel


10:00-10:30 Stephane Dauzere-Peres
Some Challenges on integration of Decisions in Logistics
10:30-10:45 Coffee/tea break
10:45-11:15 Raf Jans
Recent Advances in Solving the Multi-Vehicle Production Routing Problem
11:15-11:30 coffee/tea break

Mathijn Retel Helmrich
Product Reuse in Industries with Radical Innovations

Stephane Dauzere-Peres (Ecole des Mines de Saint-Etienne, France)

Some Challenges on Integration of Decisions in Logistics

Based on various past and present research works, this presentation will discuss and illustrate some challenges related to modeling and solving optimization problems when integrating decisions in Logistics. Motivations behind “vertical” integration and “horizontal” integration will be presented. Vertical integration corresponds to the integration of decisions that are usually taken at different decision levels (e.g. tactical and operational). Two examples will be considered: "Production planning and detailed scheduling" and "train and driver planning". Horizontal integration corresponds to combining decisions usually taken by different actors along the supply chain. One example will be considered in a maritime context: Vehicle routing and inventory management (inventory routing).

Raf Jans (HEC Montreal, Canada)

Recent Advances in Solving the Multi-Vehicle Production Routing Problem

The production routing problem combines two classic optimization problems, namely lotsizing and vehicle routing. Since production and distribution are two subsequent activities in the supply chain, overall gains can be achieved by planning them simultaneously. In a two-level supply chain with one plant and many retailers (=customers), one must determine at the same time the production and distribution planning over a multi-period horizon. In the production planning, we must determine the setup periods and production quantities. For the distribution planning, we must determine the vehicle routes from the plant to the customers and the delivery quantities. Two formulations, one with a vehicle index and one without a vehicle index, are presented. We developed a branch-and-cut algorithm to solve this problem and extensive computational results are provided.

Mathijn Retel Helmrich (McGill University, Canada)

Product Reuse in Industries with Radical Innovations

We study how product reuse decisions are influenced by innovations taking place in an industry, especially when these innovations are not only incremental in nature, but there is also a chance that a radical innovation takes place. If a new, radically innovative technology is introduced, this changes customers’ valuations of reused products, as these are still based on an old (incumbent) technology. On the other hand, products based on the radical technology may have different production costs. All of this will affect a firm’s decisions on how many items to produce and reuse, and whether or not to make its products reusable at all. The firm’s production decision problem is modelled as a Markov decision process, because of the stochastic nature of radical innovations, and because its profit-maximising production decisions depend on when a radical innovation occurs and how many used items are returned from customers, which in turn depends on how many new (reusable) items the firm previously sold to customers. A large parametric study is conducted to assess the effects of radical innovations on average rate of reuse, virgin material usage and profit.








Remy Spliet
Room: H11-05
Phone: +31-(0)10-4081342