A Study on the Block Relocation Problem: Lower Bound Derivations and Strong Formulations

Abstract

The block relocation problem (BRP) is a fundamental operational issue in modern warehouse and yard management, which, however, is very challenging to solve. In this paper, to advance our understanding on this problem and to provide a substantial assistance to practice, we (i) introduce a classification scheme and present a rather comprehensive review on all 16 BRP variants; (ii) develop a general framework to derive lower bounds on the number of necessary relocations and demonstrate its connection to existing ones on the unrestricted BRP variants; (iii) propose and employ a couple of new critical substructures concepts to analyze the BRP and obtain a lower bound that dominates all existing ones; (iv) build a new and strong mixed integer programming (MIP) formulation that is adaptable to compute 8 BRP variants, and design a novel MIP formulation based iterative procedure to compute exact BRP solutions; (v) extend the MIP formulation to address four typical industrial considerations. Computational results on standard test instances show that the new lower bound is significantly stronger, and our new MIP computational methods have superior performances over a state-of-the-art formulation.