Integrated storage space allocation and ship scheduling problem in bulk cargo terminals

ABSTRACT

This study is motivated by the practices of large iron and steel companies that have steady and heavy demands for bulk raw materials, such as iron ore, coal, limestone, etc. These materials are usually transported to a bulk cargo terminal by ships (or to a station by trains). Once unloaded, they are moved to and stored in a bulk material stockyard, waiting for retrieval for use in production. Efficient storage space allocation and ship scheduling are critical to achieving high space utilization, low material loss, and low transportation costs. In this article, we study the integrated storage space allocation and ship scheduling problem in the bulk cargo terminal. Our problem is different from other associated problems due to the special way that the materials are transported and stored. A novel mixed-integer programming model is developed and then solved using a Benders decomposition algorithm, which is enhanced by the use of various valid inequalities, combinatorial Benders cuts, variable reduction tests, and an iterative heuristic procedure. Computational results indicate that the proposed solution method is much more efficient than the standard solution software CPLEX.

Keywords:

• Benders decomposition
• integer programming
• valid inequality
• variable reduction tests
• heuristics

Acknowledgements

This research was partly supported by the Fund for Innovative Research Groups of the Natural Science Foundation of China (grant no. 71321001) and the Major International Joint Research Project of the National Natural Science Foundation of China (grant no. 71520107004).

Additional information

Notes on contributors

Lixin Tang

Lixin Tang received a B.Eng. degree in Industrial Automation, an M.Eng. degree in Systems Engineering, and a Ph.D. degree in Control Theory and Applications from Northeastern University, Shenyang, China, in 1988, 1991, 1996, respectively. Currently he is a Cheung Kong Scholars Chair Professor and the Director of the Institute of Industrial Engneering and Logistics Optimization at Northeastern University, China. His research interests include plant-wide production and logistics planning of smart industry, production and logistics batching and scheduling, operations analytics and optimization for smart industry, and optimal and predictive control for cyber-physics system. His research papers have appeared in academic journals such as Operations Research, Manufacturing & Service Operations Management, IIE Transactions, Naval Research Logistics, IEEE Transactions on Evolutionary Computation, IEEE Transactions on Power Systems, and European Journal of Operational Research. He serves as an Associate Editor of Annals of Operations Research, Journal of Scheduling, International Journal of Production Research, Journal of the Operational Research Society, IEEE Transactions on Cybernetics, IEEE Transactions on Automation Science and Engineering, and as an Area Editor of Asia-Pacific Journal of Operational Research.

Defeng Sun

Defeng Sun is a Ph.D. candidate in the Institute of Industrial Engneering and Logistics Optimization at Northeastern University, China. He received an M.S. in System Engineering at Northeastern University, China (2010). His research interests include integer programming, logistics planning and scheduling, inventory control, and supply chain design and optimization.

Jiyin Liu

Jiyin Liu is a Professor of Operations Management and Director of the M.Sc. Management Programmes portfolio at Loughborough University School of Business and Economics. He is also a Cheung Kong Scholars Visiting Chair Professor in the Institute of Industrial Engineering and Logistics Optimization at Northeastern University, China. He received a Ph.D. degree in Manufacturing Engineering and Operations Management from the University of Nottingham, Nottingham, UK, in 1993. He has been working on modeling and optimization of operations planning and scheduling problems in logistics and production systems. His research papers have appeared in leading academic journals such as Operations Research, European Journal of Operational Research, IIE Transactions, Naval Research Logistics, IEEE Transactions on Evolutional Computation, and Transportation Research Part B: Methodological.