The Multi-Depot Traveling Purchaser Problem with Shared Resources

Abstract

Using shared resources has created better opportunities in the field of sustainable logistics and procurement. The Multi-Depot Traveling Purchaser Problem under Shared Resources (MDTPPSR) is a new variant of the Traveling Purchaser Problem (TPP) in sustainable inbound logistics. In this problem, each depot can purchase its products using the shared resources of other depots, and vehicles do not have to return to their starting depots. The routing of this problem is a Multi-Trip, Open Vehicle Routing Problem. A tailored integer programming model is formulated to minimize the total purchasers’ costs. Considering the complexity of the model, we have presented a decomposition-based algorithm that breaks down the problem into two phases. In the first phase, tactical decisions regarding supplier selection and the type of collaboration are made. In the second phase, the sequence of visiting is determined. To amend the decisions made in these phases, two heuristic algorithms based on the removing and insertion of operators are also proposed. The experimental results show that not only can purchasing under shared resources reduce the total cost by up to 29.11%, but it also decreases the number of dispatched vehicles in most instances.