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An Effective MILP Model for Food Grain Inventory Transportation in India—A Heuristic Approach

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Optimization and Inventory Management

Part of the book series: Asset Analytics ((ASAN))

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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Correspondence to Sayan Chakraborty .

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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

  1. aExceeded CPLEX time limit

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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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