Solving a Continent-Scale Inventory Routing Problem at Renault

Abstract

This paper is the fruit of a partnership with Renault. Their reverse logistic requires solving a continent-scale multiattribute inventory routing problem (IRP). With an average of 30 commodities, 16 depots, and 600 customers spread across a continent, our instances are orders of magnitude larger than those in the literature. Existing algorithms do not scale, so we propose a large neighborhood search (LNS). To make it work, (1) we generalize existing split delivery vehicle routing problems and IRP neighborhoods to this context, (2) we turn a state-of-the-art matheuristic for medium-scale IRP into a large neighborhood, and (3) we introduce two novel perturbations: the reinsertion of a customer and that of a commodity into the IRP solution. We also derive a new lower bound based on a flow relaxation. In order to stimulate the research on large-scale IRP, we introduce a library of industrial instances. We benchmark our algorithms on these instances and make our code open source. Extensive numerical experiments highlight the relevance of each component of our LNS. Funding: This work was supported by Renault Group. Supplemental Material: The online appendix is available at https://doi.org/10.1287/trsc.2022.0342 .