Discrete Optimization Methods in Maritime and Road-based Transportation

Efficient maritime and road-based transport is very important to economies, Norway in particular. In 2002, the cost of sea transport world-wide was 120 billion USD. Even small improvements in logistics efficiency through optimization based decision-suppor t systems (DSS) will have huge economical and environmental effects. DOMinant will improve optimization and approximation methods that determine the performance of such DSS. 3 strong groups in discrete optimization shall work closely together: o Departmen t of Industrial Economics and Technology Management, NTNU o the optimization group at Molde University College (MUC) o SINTEF Applied Mathematics (SAM) Together we shall develop mathematical formulations of critical discrete optimization problems within m aritime and road-based transport. In particular, we shall study the Inventory Routing Problem (IRP), the Fleet Size and Mix Vehicle Routing Problem (FSMVRP). Classical variants will be extended with side constraints that are important in industrial applic ations. NTNU shall focus on exact solution methods, relaxations, and bounds. MUC and SAM shall focus on approximation methods based on metaheuristics for industrial size problems. Together, we shall develop hybrid methods. In the development, extensive co mputational experiments on instances from industry and the literature is an integral part. To speed up development, we shall utilize supercomputers. Research on discrete optimization in Norway is fragmented. Groups are strong, but small. Through DOMinant, we shall strengthen and integrate the work of 3 Norwegian groups in discrete optimization. 2 researchers will be recruited through postdoc positions. The groups have a wide international scientific network. We shall strengthen this network in DOMinant th rough conferences, workshops, visiting researcher stays, and joint publication. We shall initiate at least one EU-proposal on discrete optimization, and actively seek participation in others.