Abstract
In this work, we investigate a real-life inventory transportation problem faced by the Food Corporation of India (FCI). FCI is the central agency responsible for procurement, storage, and transportation of food grains over a large geographical area of India. Due to lopsided procurement and consumption of major food grains (i.e., rice & wheat) transportation of food grains across the warehouses becomes inevitable. FCI faces a significant challenge to find the optimal amount of food grains to be stored at each warehouse and transported among the warehouses to meet the demand during each period. In this study, we formulate an MILP model to determine the optimal inventory transportation decisions related to food grain transportation in India and demonstrate it via a case study. Commercial optimization packages can be used to solve the problem of this class. However, as we see, they fail to provide a solution for large size problem instances. Therefore, we propose a heuristic-based solution approach to solve the problem. It is seen that under a practical time limit, the proposed heuristic performs significantly well in terms of accuracy as compared to commercial optimizations packages. The nature of the study is generic in nature and can be also applied to various similar real-life problem scenarios.
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Appendices
Appendix 1
Results for scenario 1
Sl. No. | Instance size | Alpha | Number of source | Number of destination | Heuristic | CPLEX | Gap (%) | ||
---|---|---|---|---|---|---|---|---|---|
Value | Solution time | Value | Time limit (sec) | ||||||
1 | 50 | 0.2821 | 39 | 11 | 1651450 | 0.0312 | 1616545 | 3600 | 2.1592 |
2 | 50 | 0.3158 | 38 | 12 | 1612530 | 0.0312 | 1596100 | 3600 | 1.0294 |
3 | 50 | 0.3158 | 38 | 12 | 1479995 | 0.0156 | 1451435 | 3600 | 1.9677 |
4 | 50 | 0.1905 | 42 | 8 | 2181265 | 0.0156 | 2146540 | 3600 | 1.6177 |
5 | 50 | 0.2500 | 40 | 10 | 1530045 | 0.0468 | 1513665 | 3600 | 1.0821 |
6 | 100 | 0.2658 | 79 | 21 | 3302700 | 0.0468 | 3243850 | 3600 | 1.8142 |
7 | 100 | 0.1494 | 87 | 13 | 4535025 | 0.0624 | 4469196 | 3600 | 1.4729 |
8 | 100 | 0.2821 | 78 | 22 | 3378030 | 0.0468 | 3309245 | 3600 | 2.0786 |
9 | 100 | 0.2658 | 79 | 21 | 2885435 | 0.0624 | 2846836 | 3600 | 1.3559 |
10 | 100 | 0.2346 | 81 | 19 | 2803930 | 0.0312 | 2746175 | 3600 | 2.1031 |
11 | 200 | 0.1628 | 172 | 28 | 7232030 | 0.1092 | 7106100 | 3600 | 1.7721 |
12 | 200 | 0.2346 | 162 | 38 | 7839570 | 0.156 | 7642490 | 3600 | 2.5787 |
13 | 200 | 0.1765 | 170 | 30 | 7725335 | 0.1248 | 7607955 | 3600 | 1.5429 |
14 | 200 | 0.2422 | 161 | 39 | 7247205 | 0.0936 | 7118755 | 3600 | 1.8044 |
15 | 200 | 0.2195 | 164 | 36 | 8172980 | 0.1248 | 7914580 | 3600 | 3.2649 |
16 | 300 | 0.2245 | 245 | 55 | 9210160 | 0.2496 | 9059235 | 3600 | 1.6660 |
17 | 300 | 0.2000 | 250 | 50 | 10485170 | 0.2028 | 10292360 | 3600 | 1.8733 |
18 | 300 | 0.2712 | 236 | 64 | 11873735 | 0.2652 | 11475055 | 3600 | 3.4743 |
19 | 300 | 0.2195 | 246 | 54 | 9526675 | 0.2184 | 9306545 | 3600 | 2.3653 |
20 | 300 | 0.1811 | 254 | 46 | 11082185 | 0.1872 | 10763540 | 3600 | 2.9604 |
21 | 500 | 0.2225 | 409 | 91 | 16181110 | 0.9516 | 15718415 | 3600 | 2.9436 |
22 | 500 | 0.2225 | 409 | 91 | 20159315 | 0.78 | 19193905 | 3600 | 5.0298 |
23 | 500 | 0.2658 | 395 | 105 | 16636445 | 0.8736 | 16274570 | 3600 | 2.2236 |
24 | 500 | 0.2107 | 413 | 87 | 13790340 | 0.8424 | 13522505 | 3600 | 1.9807 |
25 | 500 | 0.2563 | 398 | 102 | 18860395 | 0.8892 | 18210625 | 3600 | 3.5681 |
26 | 800 | 0.2289 | 651 | 149 | 29411205 | 2.7456 | 28235380 | 3600 | 4.1644 |
27 | 800 | 0.2214 | 655 | 145 | 31008890 | 3.1668 | 29714055 | 3600 | 4.3577 |
28 | 800 | 0.2289 | 651 | 149 | 25387080 | 3.042 | 24376880 | 3600 | 4.1441 |
29 | 800 | 0.2140 | 659 | 141 | 31594345 | 3.1668 | 29911875 | 3600 | 5.6248 |
30 | 800 | 0.2422 | 644 | 156 | 32154915 | 2.8704 | 30253295 | 3600 | 6.2857 |
31 | 1200 | 0.2371 | 970 | 230 | 41726305 | 13.96 | 39525370 | 3600 | 5.5684 |
32 | 1200 | 0.2500 | 960 | 240 | 51643170 | 11.62 | 48340740 | 3600 | 6.8316 |
33 | 1200 | 0.2513 | 959 | 241 | 44470050 | 14.6644 | 41633685 | 3600 | 6.8127 |
34 | 1200 | 0.2295 | 976 | 224 | 41368565 | 12.3548 | 39685200 | 3600 | 4.2418 |
35 | 1200 | 0.2346 | 972 | 228 | 37756320 | 10.3274 | 36494555 | 3600 | 3.4574 |
Appendix 2
Results for scenario 2
Sl. No. | Instance size | Alpha | Number of source | Number of destination | Heuristic | CPLEX | Gap (%) | ||
---|---|---|---|---|---|---|---|---|---|
Value | Solution time | Value | Time limit (sec) | ||||||
1 | 50 | 0.5625 | 32 | 18 | 812325 | 0.3120 | 798040 | 3600 | 1.7900 |
2 | 50 | 0.5152 | 33 | 17 | 1042685 | 0.0156 | 1020880 | 3600 | 2.1359 |
3 | 50 | 0.5152 | 33 | 17 | 1217230 | 0.0468 | 1203455 | 3600 | 1.1446 |
4 | 50 | 0.3514 | 37 | 13 | 1475270 | 0.3900 | 1457215 | 3600 | 1.2390 |
5 | 50 | 0.5152 | 33 | 17 | 1659900 | 0.3744 | 1634145 | 3600 | 1.5761 |
6 | 100 | 0.7857 | 56 | 44 | 1746685 | 0.2496 | 1734845 | 3600 | 0.6825 |
7 | 100 | 0.3889 | 72 | 28 | 3219010 | 0.2184 | 3179825 | 3600 | 1.2323 |
8 | 100 | 0.6949 | 59 | 41 | 1979970 | 0.5148 | 1924935 | 3600 | 2.8591 |
9 | 100 | 0.6667 | 60 | 40 | 1952025 | 0.2028 | 1926705 | 3600 | 1.3142 |
10 | 100 | 0.4706 | 68 | 32 | 2713960 | 0.1404 | 2641405 | 3600 | 2.7468 |
11 | 200 | 0.5625 | 128 | 72 | 4079020 | 0.3432 | 4035880 | 3600 | 1.0689 |
12 | 200 | 0.4697 | 132 | 62 | 4695785 | 0.3432 | 4646840 | 3600 | 1.0533 |
13 | 200 | 0.3514 | 148 | 52 | 6683790 | 0.1872 | 6561325 | 3600 | 1.8665 |
14 | 200 | 0.3986 | 143 | 57 | 6245100 | 0.2340 | 6127485 | 3600 | 1.9195 |
15 | 200 | 0.4815 | 135 | 65 | 4476170 | 0.1716 | 4391710 | 3600 | 1.9232 |
16 | 300 | 0.5306 | 196 | 104 | 7042970 | 1.0452 | 6821860 | 3600 | 3.2412 |
17 | 300 | 0.5873 | 189 | 111 | 6664130 | 0.5148 | 6352040 | 3600 | 4.9132 |
18 | 300 | 0.4634 | 205 | 95 | 6981260 | 0.5772 | 6783870 | 3600 | 2.9097 |
19 | 300 | 0.5385 | 195 | 105 | 7646975 | 0.4212 | 7434005 | 3600 | 2.8648 |
20 | 300 | 0.5789 | 190 | 110 | 5799355 | 0.4056 | 5686215 | 3600 | 1.9897 |
21 | 500 | 0.5106 | 331 | 169 | 11217725 | 2.5272 | 10825845 | 3600 | 3.6199 |
22 | 500 | 0.4620 | 342 | 158 | 15632570 | 1.6068 | 14790680 | 3600 | 5.6920 |
23 | 500 | 0.5291 | 327 | 173 | 12132230 | 1.4196 | 11658955 | 3600 | 4.0593 |
24 | 500 | 0.6393 | 305 | 195 | 10457775 | 1.5444 | 10070425 | 3600 | 3.8464 |
25 | 500 | 0.4837 | 337 | 163 | 11598800 | 1.2636 | 11238320 | 3600 | 3.2076 |
26 | 800 | 0.5326 | 522 | 278 | 20317015 | 7.1136 | 18580980 | 3600 | 9.3431 |
27 | 800 | 0.5748 | 508 | 292 | 23043050 | 7.0900 | 21287010 | 3600 | 8.2494 |
28 | 800 | 0.4981 | 534 | 266 | 20013165 | 6.8900 | 18659160 | 3600 | 7.2565 |
29 | 800 | 0.5355 | 521 | 279 | 18633300 | 6.3000 | 17779830 | 3600 | 4.8002 |
30 | 800 | 0.6097 | 497 | 303 | 19422815 | 8.0300 | 17808285 | 3600 | 9.0662 |
31 | 1200 | 0.4634 | 820 | 380 | 30810930 | 23.0200 | 28035140 | 3600 | 9.9011 |
32 | 1200 | 0.5748 | 762 | 438 | 28919055 | 24.6600 | 26148415 | 3600 | 10.5958 |
33 | 1200 | 0.5228 | 788 | 412 | 28866420 | 19.9200 | 26852685 | 3600 | 7.4992 |
34 | 1200 | 0.5464 | 776 | 424 | 31690120 | 24.7700 | 27829950 | 3600 | 13.8706 |
35 | 1200 | 0.5564 | 771 | 429 | 33647415 | 23.6100 | 28825775 | 3600 | 16.7268 |
Appendix 3
Results for scenario 3
Sl. No. | Instance size | Alpha | Number of source | Number of destination | Heuristic | CPLEX | Gap (%) | ||
---|---|---|---|---|---|---|---|---|---|
Value | Solution Time | Value | Time limit (sec) | ||||||
1 | 50 | 6.1429 | 7 | 43 | 4981685 | 0.0398 | 4921825 | 3600 | 1.2162 |
2 | 50 | 6.1429 | 7 | 43 | 3223425 | 0.0778 | 3187710 | 3600 | 1.1204 |
3 | 50 | 7.3333 | 6 | 44 | 2079975 | 0.0381 | 2036070 | 3600 | 2.1564 |
4 | 50 | 3.5455 | 11 | 39 | 1494890 | 0.0627 | 1464555 | 3600 | 2.0713 |
5 | 50 | 2.3333 | 15 | 35 | 1328165 | 0.0498 | 1306285 | 3600 | 1.6750 |
6 | 100 | 3.3478 | 23 | 77 | 3299650 | 0.2451 | 3181875 | 3600 | 3.7014 |
7 | 100 | 3.3478 | 23 | 77 | 3690860 | 0.0727 | 3556420 | 3600 | 3.7802 |
8 | 100 | 4.2632 | 19 | 81 | 3642470 | 0.0679 | 3521515 | 3600 | 3.4347 |
9 | 100 | 3.1667 | 24 | 76 | 2711575 | 0.0668 | 2602320 | 3600 | 4.1984 |
10 | 100 | 3.1667 | 24 | 76 | 3641430 | 0.0738 | 3536805 | 3600 | 2.9582 |
11 | 200 | 5.0606 | 33 | 167 | 7072930 | 0.12 | 6822750 | 3600 | 3.6668 |
12 | 200 | 3.4444 | 45 | 155 | 8074245 | 0.1248 | 7733115 | 3600 | 4.4113 |
13 | 200 | 4.5556 | 36 | 164 | 7490365 | 0.1248 | 7181364 | 3600 | 4.3028 |
14 | 200 | 3.6512 | 43 | 157 | 6645620 | 0.1092 | 6394775 | 3600 | 3.9227 |
15 | 200 | 3.5455 | 44 | 156 | 7642950 | 0.1404 | 7289610 | 3600 | 4.8472 |
16 | 300 | 4.5556 | 54 | 246 | 12233600 | 0.234 | 11416165 | 3600 | 7.1603 |
17 | 300 | 3.9180 | 61 | 239 | 9274165 | 0.234 | 8949305 | 3600 | 3.6300 |
18 | 300 | 3.6875 | 64 | 236 | 8131880 | 0.2496 | 7869360 | 3600 | 3.3360 |
19 | 300 | 4.4545 | 55 | 245 | 13339635 | 0.2496 | 13402075 | 3600a | −0.4659 |
20 | 300 | 4.8824 | 51 | 249 | 11978365 | 0.3276 | 11336165 | 3600 | 5.6651 |
21 | 500 | 4.2083 | 96 | 404 | 17876425 | 0.78 | 16801105 | 3600 | 6.4003 |
22 | 500 | 3.5872 | 109 | 391 | 15447495 | 0.9204 | 14839285 | 3600 | 4.0986 |
23 | 500 | 4.2083 | 96 | 404 | 18047305 | 1.014 | 18872055 | 3600a | −4.3702 |
24 | 500 | 3.5872 | 109 | 391 | 16618755 | 1.2168 | 17630594 | 3600a | −5.7391 |
25 | 500 | 4.0000 | 100 | 400 | 18938390 | 0.8736 | 17745595 | 3600 | 6.7216 |
26 | 800 | 4.3691 | 149 | 651 | 35611425 | 3.6036 | 34186968 | 3600 | 4.1667 |
27 | 800 | 7.2474 | 97 | 703 | 35365390 | 3.3852 | 33080785 | 3600 | 6.9061 |
28 | 800 | 3.6784 | 171 | 629 | 23279945 | 3.744 | 22551970 | 3600 | 3.2280 |
29 | 800 | 3.5977 | 174 | 626 | 24362435 | 4.47 | 23197980 | 3600 | 5.0196 |
30 | 800 | 4.2632 | 152 | 648 | 31086625 | 4.0092 | 29056840 | 3600 | 6.9856 |
31 | 1200 | 3.7431 | 253 | 947 | 46173110 | 13.6498 | 45190590 | 3600 | 2.1742 |
32 | 1200 | 4.3333 | 225 | 975 | 51691665 | 11.2478 | 46962155 | 3600 | 10.0709 |
33 | 1200 | 4.5046 | 218 | 982 | 40734345 | 9.3758 | 37940585 | 3600 | 7.3635 |
34 | 1200 | 4.0633 | 237 | 963 | 44112455 | 13.2444 | 39902870 | 3600 | 10.5496 |
35 | 1200 | 3.7244 | 254 | 946 | 40565095 | 12.4648 | 37375475 | 3600 | 8.5340 |
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Chakraborty, S., Bhattacharjee, K., Sarmah, S.P. (2020). An Effective MILP Model for Food Grain Inventory Transportation in India—A Heuristic Approach. In: Shah, N., Mittal, M. (eds) Optimization and Inventory Management. Asset Analytics. Springer, Singapore. https://doi.org/10.1007/978-981-13-9698-4_19
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