Abstract
In today's highly competitive global marketplace, the pressure on organizations to find new ways to create value and deliver it to their customers grows ever stronger. In the last two decades, the logistics function has moved to center stage. There has been a growing recognition that effective logistics management throughout the firm and supply chain can greatly assist in the goal of cost reduction and service enhancement. The keys to success in Logistics Management (LM) require heavy emphasis on integration of activities, cooperation, coordination and information sharing throughout the firm and the entire supply chain, from suppliers to customers. To be able to respond to the challenge of integration, modem businesses need sophisticated decision support systems based on powerful mathematical models and solution techniques, together with advances in information and communication technologies. Both industry and academia alike have become increasingly interested in using LM as a means of responding to the problems and issues posed by changes in the logistics function. This paper presents a brief discussion on the important issues in LM and argues that metaheuristics can play an important role in solving complex logistics problems derived from designing and managing logistics activities within the supply chain as a single entity. Among several possible metaheuristic approaches, we will focus particularly on Iterated Local Search, Tabu Search and Scatter Search as the methods with the greatest potential for solving LM related problems. We also briefly present some successful applications of these methods.
Access provided by Autonomous University of Puebla. Download to read the full chapter text
Chapter PDF
Similar content being viewed by others
References
Ballou, R.H. (1999) Business Logistics Management, Prentice-Hall, New Jersey.
Beamon, B.M. (1999) “Designing the Green Supply Chain,” Logistics Information Management 12(4):332–342.
Blanchard, B.S. (1992) Logistics Engineering and Management, Prentice-Hall.
Bloemhof-Ruwaard, J.M., P. van Beek, L. Hordijk and L.N. van Wassenhove (1995) “Interactions between Operational Research and Environmental Management,” European Journal of Operations Research 85:229–243.
Böse, J., T. Reiners, D. Steenken and S. Voß (2000) “Vehicle Dispatching at Seaport Container Terminals using Evolutionary Algorithms,” Proceeding of the 33rd Hawaii International Conference on System Sciences, 1–10.
Bowersox, D. and D. Closs (1996) Logistical Management: The Integrated Supply Chain Process, McGraw-Hill.
Bramel, J. and D. Simchi-Levi (1997) The Logic of Logistics: Theory, Algorithms and Applications for Logistics Management, Springer-Verlag, New York.
Campbell, K.W., R.B. Durfee and G.S Hines (1997) “FedEX Generates Bid Lines using Simulated Annealing,” Interfaces 27(2):1–16.
Campos, V., M. Laguna and R. Martí (1998) “Scatter Search for the Linear Ordering Problem,” in New Methods in Optimisation, D. Corne, M. Dorigo and F. Glover (Eds.), McGraw-Hill.
Cavique, L., C. Rego and I. Themido (1998) “New Heuristic Algorithms for the Crew Scheduling Problem,” in S. Voß, S. Martello, I.H. Osman, C. Roucairol, “Metaheuristics: Advances and Trends in Local Search Paradigms for Optimization”, Kluwer Academic Publishers, 37–47.
Chaffey, D. (2001) E-business and E-commerce Management: Strategy, Implementation and Practice, Prentice Hall.
Cooper, M.C., D.M. Lambert and J.D. Pagh (1997) “Supply Chain Management: More Than a New Name for Logistics,” The International Journal of Logistics Management, 8(1): 1–14.
Corberán, A., E. Fernindez, M. Laguna and R. Martí (2000) “Heuristic Solutions to the Problem of Routing School Buses with Multiple Objectives,” Working Paper, Universitat de Valencia, Spain.
Corne, D., M. Dorigo and F. Glover (1999) New Ideas in Optimisation, McGraw-Hill.
Coyle, J.J., E.J. Bardi and C.J. Langley, Jr. (1988) The Management of Business Logistics, West Publishing Company.
Crainic, T.G. and G. Laporte (1998) Fleet Management and Logistics, Kluwer Academic Publisher, Massachusetts.
Chase, R.B., F.R. Jacobs and N.J. Aquilano (2004) Operations Management for Competitive Advantage, 10th ed., Irwin, McGraw-Hill.
Daganzo, C.F. (1997) Fundamentals of Transportation and Traffic Operations, Pergamon-Elsevier.
Dale, S.R. and R.S. Tibben-Lembke (1998) Going Backwards: Reverse Logistics Trends and Practices, Reverse Logistics Executive Council.
Daskin, M.S. (1995) Network and discrete location: models, algorithms, and applications, John Wiley, New York.
Dornier, P.P., R. Ernst, M. Fender and P. Kouvelis (1998) Global Operations and Logistics, John Wiley & Sons.
Deitel, H. M., P. J. Deitel and Steinbuhler, K. (2001) E-business and e-commerce for managers, Prentice Hall.
Drezner, Z. (1995) Facility Location. A Survey of Applications and Methods, Springer Verlag, Berlin.
Elliam, T. and G. Orange (2000) “Electronic Commerce to Support Construction Design and Supply-Chain Management: a Research Note,” International Journal of Physical Distribution and Logistics Management, 30(3/4): 345–360.
Fanni, A., S. Liberatore, G.M. Sechi, M. Soro and P. Zuddas (2000) “Optimization of Water Distribution Systems by a Tabu Search Method,” in Computing Tools for Modeling, Optimization and Simulation, M. Laguna and J.L. González Velarde (eds.), Kluwer Academic Publishers, 279–298.
Fine, C. (1998) Clockspeed: Winning industry control in the age of temporary advantage, Perseus Books.
Fleischman, M., J.M. Bloemhof-Ruwaard, R. Dekker, E. van der Laan, J.A.E.E. van Nunen and L.N. van Wassenhove (1997) Quantitative Models for Reverse Logistics: a Review, European Journal of Operations Research 103:1–17.
Fleischmann, B., J.A.E.E. van Nunen, M. Grazia Speranza and P. Stähly (Eds.) (1998) Advances in Distribution Logistics, Springer-Verlag, New York.
Glover, F. and G. Gkochenberger (2001) (eds.) Handbook in Metaheuristics, Kluwer Academic Publishers.
Glover, F., J.P. Kelly and M. Laguna (2000) “The OptQuest Approach to Crystal Ball Simulation Optimization” Decisioneering White Paper. (http://www.decisioneering.com/articles/article_index.html).
Glover, F. (1998) “A Template for Scatter Search and Path Relinking,” in Artificial Evolution, Lecture Notes in Computer Science 1363, J.K. Hao, E. Lutton, E. Ronald, M. Schoenauer and D. Snyers (Eds.), Springer-Verlag, 3–54.
Graham, G. and G. Hardaker (2000) “Supply-Chain Management across the Internet”, International Journal of Physical Distribution and Logistics Management 30(3/4):286–295.
Graves, S.C., A.H.G. Rinnoy Kan and P.H. Zipkin (1993) Logistics of Production and Inventory, North-Holland, Elsevier Science.
Hax, A.C. and D. Candea (1984) Production and inventory management, Prentice Hall.
Ichoua, S., M. Gendreau and J.Y. Potvin (2000) “Diversion Issues in Real-Time Vehicle Dispatching,” Transportation Science 34(4):426–438.
James, F.R. and W.C. Copacino, (1994) The Logistic Handbook, Andersen Consulting, Free Press.
John, E.S. (1992) Logistics Modeling, Pitman Publishing.
Johnson, J.C., D.F. Wood, D.L. Wardlow and P.R. Murphy (1999) Contemporary Logistics, Prentice Hall Business Publishing
Kasilingam, R.G. (1999) Logistics and Transportation Design and Planning, Kluwer.
Kubo, M. (2001) “On the Inventory Routing Problem,” International Conference on Adaptive memory and Evolution: Tabu search and Scatter Search, Oxford, Mississippi, March 7–10.
Kwan, A.S.K., R.S.K. Kwan, M.E. Parker and A. Wren (1997) “Producing Train Driver Schedules under Operating Strategies,” in Preprints of the 7th International Workshop on Computer-Aided Scheduling of Public Transportation, Boston, USA.
Laguna, M. (1997) Metaheuristic Optimization with Evolver, Genocop and OptQuest, EURO/INFORMS Joint International Meeting, Plenaries and Tutorials, J. Barceló (Ed.), 141–150.
Laguna, M. (1998) Optimization of Complex Systems with OptQuest, OptQuest for Crystal Ball User Manual, Decisioneering.
Laguna, M. (1999) “Scatter Search,” to appear in Handbook of Applied Optimization, P. M. Pardalos and M. G. C. Resende (Eds.), Oxford Academic Press.
Lambert, D., R. Stock and L.M. Ellram (1998) Fundamentals of Logistics, McGraw-Hill.
Lapide, L. (1998) “Supply Chain Planning Optimization,” The Report on Supply Chain Management, Advanced Manufacturing Research.
Lee, H., P. Padmanabhan and S. Whang (1997) “The Paralyzing Curse of the Bullwhip Effect in a Supply Chain,” Sloan Management Review, Spring 93–102.
Lee, H.L., C. Billington and B. Carter (1993) “Hewlett-Packard Gains Control of Inventory and Service through Design for Localization,” Interfaces 23(4): 1–11.
Lourenço, H.R., O. Martin and T. Stützle (2001) “Iterated Local Search,” in Handbook of Metaheuristics, F. Glover and G. Kochenberger, (eds.), Kluwer Academic Publishers, International Series in Operations Research & Management Science, 321–353.
Martí, R., H. Lourenço and M.L. Assigning (2000) “Proctors to Exams with Scatter Search,” published in "Computing Tools for Modeling, Optimization and Simulation", M. Laguna and J.L. González Velarde (eds.), Kluwer Academic Publishers, 215–228.
Miller, T.C., T.C. Friesz and R. Tobin (1996) Equilibrium Facility Location on Networks, Springer, Berlin.
Osman, I.H. and J.P. Kelly (1996) Meta-Heuristics: Theory and Applications, Kluwer Academic Publishers.
Pinedo, M. (1995) Scheduling: Theory, Algorithms and Systems, Prentice-Hall.
Rayward-Smith, V.J., I.H. Osman, C.R. Reeves and G.D. Smith (1996) Modern Heuristic Search Methods, John Wiley.
Ribeiro, R. and H.R. Lourenço (2001) “A Multi-Objective Model for a Multi-Period Distribution Management Problem,” Economic Working Papers Series, Universitat Pompeu Fabra, Spain.
Robert, B.H and E.L. Nichols (1999) Introduction to Supply Chain Management, 1/e, Prentice Hall.
Simchi-Levi, D., P. Kaminsky and E. Simchi-Levi (2000) Designing and Managing the Supply Chain, McGraw-Hill.
Skjoett-Larsen, T. (2000) “European Logistics beyond 2000,” International Journal of Physical Distribution and Logistics Management 30(5):377–387.
Slats, P.A., B. Bhola, J.J.M. Evers and G. Dijkhuizen (1995) Logistics Chain Modelling, European Journal of Operational Research, 87:1–20.
Stevenson W.J. (1999) Production/Operations Management, 6th ed., Irwin, McGraw-Hill.
Tayur, S., R. Ganeshan and M. Magazine (1998) Quantitative Models for Supply Chain Management. Kluwer Academic Publishers.
Voß S., S. Martello, I.H. Osman and C. Roucairol (1998) Meta-Heuristics: Advances and Trends in Local Search Paradigms for Optimization. Kluwer Academic Publishers.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Kluwer Academic Publishers
About this chapter
Cite this chapter
Lourenço, H.R. (2005). Logistics Management. In: Sharda, R., Voß, S., Rego, C., Alidaee, B. (eds) Metaheuristic Optimization via Memory and Evolution. Operations Research/Computer Science Interfaces Series, vol 30. Springer, Boston, MA. https://doi.org/10.1007/0-387-23667-8_15
Download citation
DOI: https://doi.org/10.1007/0-387-23667-8_15
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4020-8134-7
Online ISBN: 978-0-387-23667-4
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)