Solving a heterogeneous fleet multi-compartment vehicle routing problem:a case study

Abstract

Vehicle Routing Problem (VRP) is a complex optimisation problem in the field of supply chain management, especially in the Oil & Gas sector. Due to the rising cost of fuel, effective planning of transportation routes has become a crucial success factor for distribution companies, increasing operational efficiency as well as the corresponding service level. In this paper, we present an optimisation model to solve a heterogeneous fleet multi-compartment vehicle routing problem (MCVRP), a variant of the conventional vehicle routing problem (VRP). Real data are obtained from a medium size oil distribution company, operating in Greece and incorporates 19 petrol stations served from a central oil depot using a fleet of various multi-compartment tanker trucks. The main objective of this research is to design an optimum set of routes minimising distance and truck operating costs. The MCVRP with a heterogeneous fleet of vehicles is modelled as a Mixed-Integer Linear Programming (MILP) problem and the proposed solution determines the number of assigned vehicles, the planning of daily routes and the allocation of different fuels to vehicles compartments, while satisfying customer demand following specific requirements, as detailed in the Carriage of Dangerous Goods (ADR) Regulations.

KEYWORDS:

• Multi-compartment
• vehicle routing
• fuel distribution
• heterogeneous vehicle fleet
• oil & gas sector
• supply chain
• optimisation

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The data that support the findings of this study are available from the corresponding author, S.E., upon reasonable request.

Additional information

Notes on contributors

Simos Efthymiadis

Simos Efthimiadis is a Mechanical Engineer T.E., holder of a Master's Degree in Energy (MSc in Energy) from Heriot-Watt University, Great Britain, and a PhD student at the department of Mechanical Engineering at the University of Western Macedonia, Greece. He is a certified Consultant for the Safe Transport of Dangerous Goods and Chief Inspector of Environmental Management Systems. He is a certified Project Manager and Senior Logistician. He has many years of professional experience in the field of Installations & Handling of Petroleum Products and, since 2018, he is the Deputy Operations Officer at ELINOIL SA. His main areas of responsibility are the storage and handling of liquid fuels and the operation of the company's warehouses. He is a member of the Installations & Storage Committee of the Hellenic Petroleum Marketing Companies Association (SEEPE).

Nikolaos Liapis

Dr Nikolaos Liapis is a Mechanical Engineer and he holds a PhD in Chemical Engineering. His main areas of specialization are fuels and lubricants, tanker ships management, logistics and biofuels, as he has worked for more than 28 years in managerial positions in the Oil Sector. The last 15 years he was occupied as Chief Operations Officer in ELINOIL SA, and as General Manager to ELIN SHIPPING, an affiliate shipping company, operating small tankers. He is highly experienced in project management, overseeing projects as biodiesel production plant design and construction, fuel depots, construction and tanker design and construction. Dr. Liapis is the President of the Hellenic Institute of Marine Technology (HIMT) and Member of the Board of Hellenic Shortsea Shipowners Association (HSSA). He is the Coordinator of the Energy Products Committee of the Hellenic Petroleum Marketing Companies Association (SEEPE) member of the Downstream Committee of Southeast Europe Energy Institute (IENE) and member of the Lloyd’s Register Technical Committee. He is a founding member of the Greek Association of Biofuel Producers (now SVIVE). He has been Chairman of the Marine LNG Network and of the Biofuels Technology Platform. He is also a lecturer at University of Piraeus, and at Business College of Athens and has been a lecturer at Athens Metropolitan College teaching Energy Policies, Maritime Logistics, Shipping and Strategic Management. He was a speaker at a significant number of conferences on energy, fuels, biofuels and shipping and he has been the representative of the European Biodiesel Board (EBB) in Greece.

George Nenes

George Nenes is a Professor at the Department of Mechanical Engineering at the University of Western Macedonia, Greece, while he is a research associate at the Department of Mechanical Engineering at Aristotle University of Thessaloniki. He has obtained a Diploma (five-year degree) in Mechanical Engineering, an M.Sc. in Management of Production Systems and a Ph.D. in Statistical Quality Control from the Aristotle University of Thessaloniki. He has worked as a Post Doc researcher in Erasmus University of Rotterdam and as a visiting lecturer in the Department of Mechanical Engineering of the University of Western Macedonia, the Department of Production and Management Engineering of the Democritus University of Thrace the Department of Mechanical Engineering of the University of Thessaly and others. He has also taught in an undergraduate level at the external programme of Middlesex University, as well as at the MBA from the external programme of the University of London (DEI Bachelor and Master Degrees). His work has been published in a variety of journals, including European Journal of Operational Research, IIE Transactions and International Journal of Production Economics. His main research interests are in the area of Statistical Quality Control and Supply Chain Management.