Maritime inventory routing with an application to fish feed distribution

Abstract

This paper studies a maritime inventory routing problem (MIRP) faced by fish feed suppliers responsible for distributing different types of fish feed from one or several production facilities to a number of fish farms located at sea with a given heterogeneous fleet of specialized vessels. The feed supplier needs to maintain sufficient inventory levels at the farms at all times while minimizing the distribution costs. We propose a discrete-time mixed-integer programming (MIP) model for the fish feed MIRP. Since a commercial MIP-solver can only solve small problem instances, we also propose a matheuristic for solving real-life instances. The matheuristic employs a memetic algorithm, a metaheuristic combining a genetic algorithm with local search to decide how to route the vessels, coupled with a linear program for assigning quantities along the vessel routes. We perform a computational study on a number of realistic test instances generated using data from one of Norway’s largest fish feed suppliers. We show that the matheuristic produces reasonable solutions where the commercial MIP-solver fails, and as such can provide valuable decision support.