2019
DOI: 10.4208/jcm.1905-m2019-0055
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Tackling Industrial-Scale Supply Chain Problems by Mixed-Integer Programming

Abstract: The modeling flexibility and the optimality guarantees provided by mixed-integer programming greatly aid the design of robust and future-proof decision support systems. The complexity of industrial-scale supply chain optimization, however, often poses limits to the application of general mixed-integer programming solvers. In this paper we describe algorithmic innovations that help to ensure that MIP solver performance matches the complexity of the large supply chain problems and tight time limits encountered i… Show more

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Cited by 3 publications
(4 citation statements)
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“…Since, to the best of our knowledge, there are no general-purpose supply chain heuristics to compare with (see, e.g., [6]), we compare different parameter settings of our algorithm with Gurobi running with default parameter settings except for the parameter MIPFocus, which is set to 1, so that Gurobi is focusing on finding feasible points quickly. To this end, we apply the PADM until a first feasible solution is found and use the time required by PADM as the time limit for Gurobi.…”
Section: Numerical Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…Since, to the best of our knowledge, there are no general-purpose supply chain heuristics to compare with (see, e.g., [6]), we compare different parameter settings of our algorithm with Gurobi running with default parameter settings except for the parameter MIPFocus, which is set to 1, so that Gurobi is focusing on finding feasible points quickly. To this end, we apply the PADM until a first feasible solution is found and use the time required by PADM as the time limit for Gurobi.…”
Section: Numerical Resultsmentioning
confidence: 99%
“…Following this trend, SAP, as one of the leading vendors of business software, started to develop and sell products such as the SAP Advanced Planning and Optimization software. One specific function thereof is called Supply Network Planning Optimization (SNP optimization), which relies on mixed-integer linear optimization (MIP) models and solvers [6]. SNP optimization aims at providing quantitative decision support for typical supply chain processes such as material procurement, production, transportation, demand fulfillment, stock keeping, and resource capacity utilization.…”
Section: Introductionmentioning
confidence: 99%
“…The core algorithm usually relies on a linear programming engine to solve a sequence of relaxations, which are tightened using a variety of cuts, while bounding schemes are used to efficiently explore the search space. Such solvers have now reached a level of maturity enabling them to tackle and solve large-scale MIP problems encountered in industrial applications [30], in spite of their unfavourable computational complexity. These methods can be used to directly solve the integer programming formulation (3) or solve a relaxed version of it.…”
Section: Mixed-integer Programming Solversmentioning
confidence: 99%
“…Além disso, existem situações em que as variáveis podem assumir valores reais, caracterizando a Programação Linear Inteira Mista (PLIM) (Vanderbei, 2020). Como exemplos da PLIM, podem ser citados: a aplicação para os limites de tempo na cadeia de suprimentos, o suporte ao planejamento da capacidade produtiva, o sequenciamento de produtos e quantidade de pessoal em linhas de montagem paralelas (Gamrath et al, 2019;Huka et al, 2021).…”
Section: Introductionunclassified