Discrete time and continuous time formulations for a short sea inventory routing problem

Abstract

We consider a fuel oil distribution problem where an oil company is responsible for the routing and scheduling of ships between ports such that the demand for various fuel oil products is satisfied during the planning horizon. Inventory management considerations are taken into account at the demand side only, and consumption rates are given and assumed to be constant. We provide two alternative mixed integer formulations: a discrete time model adapted from the case where the consumption rates are varying and a classical continuous time formulation. We discuss different extended formulations and valid inequalities that allow us to reduce the linear gap of the two initial formulations. A computational study comparing the various models accordingly to their size, linear gap and running time, was conducted based on real small-size instances, using a commercial software.