Integrating local search and network flow to solve the inventory routing problem hoong chuin lau school of computing national university of singapore, 3 science drive 2, singapore 117543. We first described the relevance of this problem and of the other two integrated supply chain planning problems, namely, the lotsizing problem with direct shipment and the inventory routing problem. A solution to the inventory routing problem is feasible is. Its study is rooted in the seminal paper of bell et al. Metaheuristics is an emerging class of heuristics that can be applied to combinatorial optimization problems. In this tutorial paper, we introduce the inventory routing problems irps with examples, we classify the characteristics of an irp and present different models and policies for the class of problems where the crucial decision is when to serve customers. Assess problem solving skills impaired by brain injury. The in v en tory routing problem ann campb ell llo yd clark e an ton kleyw egt martin sa v elsb ergh the l o gistics institute scho ol of industrial and systems engine. The constraints of the problem guarantee that in each route the capacity of each vehicle is not exceeded and that the level of the inventory both at the supplier and at each retailer is never lower than the minimum level. Pdf the integrated productioninventorydistribution. Constraints,, represent the lotsizing part of the problem. This is opposed to the approach of many other authors focusing on a low number of.
A thesis submitted to the faculty of brigham young university in partial fulfillment of the requirements for the degree of. Moin centre for statistical and decision science studies, faculty of computer and mathematical sciences, universiti teknologi mara, 40450 shah alam, selangor, malaysia corresponding author. Twoechelon distribution systems with vehicle routing. The objective function minimizes the total production, setup, inventory and routing costs. Many companies are realizing that value for a customer can, in part, be created through logistics management. Instead we concentrate on heuristic solution methods. From stages to dimensions to the almost forgotten cultural context puncky paul heppner university of missouri columbia the purpose of this article is to suggest an expansion of the conceptualizations and measurement of applied problem solving and, relatedly. Each rc owns an inventory, which is managed by the central depot. F or example, the vehicle routing problem, whic h is nphard, is a sp ecial case. Nov 27, 2012 in this tutorial paper, we introduce the inventory routing problems irps with examples, we classify the characteristics of an irp and present different models and policies for the class of problems where the crucial decision is when to serve customers. Problem definition the ilrp can be described as follows.
Problem solving inventory pdf the problem solving inventory psi heppner petersen, 1982 is a widely used measure to assess. View inventory routing problems research papers on academia. Social problemsolving ability has implications for all areas of life, including interpersonal and workrelated relationships. Inventory routing problem is one of the famous issues in this area. Inventory routing problems research papers academia. The problem is modeled to facilitate the pick up of empty pallets at the retailer during the linehaul operation and delivery of empty pallets to the suppliers during the backhaul operation. Vehicle routing with cross docks, split deliveries, and. We present and discuss the inventory routing problem. A b s t r a c t a r t i c l e i n f o in this paper, the stochastic locationroutinginventory problem is considered in which retailers demands and leadtimes are stochastic. Location routing inventory problem withtranshipment points using pcenter s. The inventoryrouting problem irp integrates inventory management, vehicle routing and delivery scheduling decisions. Smilowitz department of industrial engineering and management sciences northwestern university evanston, il 60201, usa abstract disaster relief presents many unique logistics challenges, with problems including dam. The vehiclerouting problem vrp, strictly speaking, is not a jtip, but is a topic with a long history that, in a sense, sets the stage for jtips. The accuracy of the inventory system affects purchasing, planning and production departments in the organization.
It is easy to see that if all transshipment variables are set to zero, the. This paper presents a closedloop locationinventoryrouting problem model considering both quality defect returns and nondefect returns in ecommerce supply chain system. The inventory routing problem is closely related to the problem faced in this study, as the deterioration process of a site closely resembles the consumption of inventory at a customer, and a functioning site maps to a positive inventory level. We are motivated by a problem that arises in maritime transportation where. The inventoryrouting problem with transshipment sciencedirect. The robust vehicle routing problem with time windows agostinho agra marielle christiansen y rosa figueiredo z lars magnus hvattum x michael poss cristina requejo k september 25, 2012 abstract this paper addresses the robust vehicle routing problem with time windows. The shiprouting problem srp, which can be viewed as a multidepot jtip, involves the design of a set of. The constraints force the setup variable to be one if production takes place in a. The purpose of this paper is to introduce, model, and solve a rich multiperiod inventory routing problem with pickups and deliveries motivated by the replenishment of automated teller machines in the netherlands. Development of a simheuristic approach for solving realistic. A hybrid heuristic for an inventoryrouting problem claudia archetti 1 luca bertazzi 1 alain hertz 2 m. A rolling horizon framework for the inventory routing problem.
Optimization algorithms for multicommodity routing and. Grazia speranza 1 1 university of brescia, department of quantitative methods, brescia, italy. In this paper, we provide the relationship between vendormanaged inventory and inventory routing problem. Integrating local search and network flow to solve the. Inventory routing problems introduce inventory routing game. For a given heuristic h, applied to the set x, let vx denote the cost of the generated solution. In section 3, we highlight the challenges associated with determining the minimum number of vehicles required to produced a feasible delivery plan.
In section 4 we present our alns algorithm, followed by computational results, in section 5, and by our conclusions in section 6. Combining monte carlo simulation with heuristics for solving the inventory routing problem with stochastic demands jose cacerescruz angel a. When using a clrp model, the decision maker considers three simultaneous decisions. Introduction in recent years, one of the most interesting issues in the field of supply chain management is to integrate and coordinate activities. Even the latter cannot be solved to optimality for all but the smallest size problems. This problem arises when vehicle routing and inventory decisions must be made simultaneously, which is typically the case in vendormanaged inventory systems. Golden et al, 1984 1 have introduced this problem as a combination of transport equipment and inventory control problems and showed that it is nphard. Inventory management example problems with solutions 1. We obtain two such linear programs by formulating the control problem as a markov decision process and then replacing the optimal value function with the sum of singlecustomer inventory. The inventory routing problem irp integrates inventory management, vehicle routing and delivery scheduling decisions. Joint transportationandinventory problems in supply chains. The inventory routing problem captures the basic characteristics of situations where vendor managed resupply may be used, and methodologies developed for its solution could become building blocks for logistics planning systems.
Inventory management example problems with solutions. Moin centre for statistical and decision science studies, faculty of computer. Pdf in this tutorial paper, we introduce the inventory routing problems irps with examples, we classify the characteristics of an irp and present. Inventory systems provide companies with the ability to track the supplies and raw materials needed to build product to meet customer demand. We consider a new approach to stochastic inventory routing that approximates the future costs of current actions using optimal dual prices of a linear program. Mathematical formulation for the closed loop inventory routing problem drazen popovic university of belgrade, faculty of transport and traffic engineering, d. Modeled after other libraries in the operations research community, this site presents a library of publicly available test problem instances for a class.
Vendors save on distribution cost by being able to better coordinate deliveries to different customers, and customers do not have to dedicate resources to. The irp with stochastic demands, which is an nphard problem, can be described as follows. The irp arises in the context of vendor managed inventory vmi, in which a supplier makes the replenishment decisions for products delivered to its customers. Formulations for an inventory routing problem wiley online library. Solving a closedloop locationinventoryrouting problem. A simheuristic approach for solving realistic inventory routing problems 63 number of working conditions or requirements see below for some examples have to be chosen, reflecting the reality of complex inventory routing systems. As noted earlier, this model identifies four major problemsolving skills. We introduce a formulation for the inventory location problem with routing costs. Joint transportationandinventory problems in supply. A genetic algorithm on inventory routing problem ayd. We call this class the problems with decisions over time only. This paper presents a closedloop location inventory routing problem model considering both quality defect returns and nondefect returns in ecommerce supply chain system. Solving a closedloop locationinventoryrouting problem with. We study problems that integrate depot location decisions along with the inventory routing problem of serving clients from these.
Development of a simheuristic approach for solving. Inventory routing problems are complex in nature and they can be solved either theoretically or using a heuristics method. Joint transportationand inventory problems in supply chains. Constraints, are the inventory flow balance at the plant and customers, respectively. The thesis studies the inventory routing problem irp with explicit energy consideration. Inventory routing problem, mixed integer problem, meta heuristic method, backlogging, multidepot 1.
The planning department uses the inventory data to create a. The objective is to minimize the total cost produced in both forward and reverse logistics networks. Citeseerx document details isaac councill, lee giles, pradeep teregowda. A tabu search heuristic for the inventory routing problem. The decision to visit a customer on a particular day could be to restock inventory, meet that days. This paper studies on the inventory routing problem irpand uses one target function to describe these two conflicting problems, which are very important in the. In this section we briefly describe how our alns is implemented for the irptou. The in v en tory routing problem georgia institute of. Optimization of integrated inventory routing problem for. If you do not see its contents the file may be temporarily unavailable at the journal website or you do not have a pdf plugin installed and enabled in your browser.
Delivery cost approximations for inventory routing problems. As a combination of the lotsizing and vehicle routing problem, the production routing problem has an interesting, but complex, structure. Under the vendor managed inventory vmi model, the irp is an integration of the inventory management and. Bektas 2006 concluded that the characteristics of the multiple salesman problem seem appropriate. We consider the inventory routing problem irp where customers have to be served over a discrete. This website is dedicated to a particular maritime transportation planning problem known as the maritime inventory routing problem mirp, which plays an integral role in global bulk shipping. Inventory routing systems have transformed the supplierretailer relationship in many industries, including the oil and gas, retail, textile and automotive industry see andersson, hoff, christiansen, hasle and lokketangen, 2010. The inventory routing problem with transshipment 2 cirrelt201121. Models and optimization methods for the inventorylocationrouting. The variant of interest in this paper was introduced in the. In the most restrictive case, a vehicle routing problem must be solved for each time period.
A library of maritime inventory routing problems mirplib this website is dedicated to a particular maritime transportation planning problem known as the maritime inventory routing problem mirp, which plays an integral role in global bulk shipping. A location inventory routing problem with perishable products abdelhalim hiassat, ali diabat engineering systems and management, masdar institute of science and technology emails. Inventory routing problem is a variant of the vehicle routing problem that consists of interrelated vehicle routing and inventory decisions. A hybrid heuristic for an inventory routing problem claudia archetti 1 luca bertazzi 1 alain hertz 2 m. The annual demand is approximately 1,200 batteries.
The continuous time inventory routing problem optimization online. Inventory routing problem, which is an nphard problem that appeared for more than thirty years, is a variant of the vehicle routing problem that adds a problem of inventory management. An auto parts supplier sells hardybrand batteries to car dealers and auto mechanics. Inventory routing problem objective minimize distribution costs without causing any stockouts over a finite horizon or maximize the expected total discounted value rewards minus costs over an infinite horizon. An inventory model with metric approach in location. This problem, referred to as deterministic order upto level inventory routing problem, is obviously. Expanding the conceptualization and measurement of applied. Deterministic orderupto level policies in an inventory. The problem solving inventory psi heppner petersen, 1982 is a widely used measure to assess. Commodities can be brought to and from the depot, as well as being exchanged among customers to efficiently manage their inventory shortages and surpluses. Vendor managed resupply is an emerging trend in logistics and refers to situations in which a supplier manages the inventory replenishment of its customers. The stochastic inventoryrouting problem combines two classical problems in operations research.
Home mirplib a library of maritime inventory routing. The inventory routing problem irp integrates inventory management, vehicle routing, and delivery scheduling decisions. The inventory routing problem considered in this paper is concerned with the repeated distribution of a commodity, such as heating oil, over a long period of time to a large number of customers. We propose a combined optimization algorithm named hybrid ant colony optimization algorithm haco to address this model. Social problemsolving ability has implications for all areas of life. Once the alns has fixed the routing variables, the remaining problem is modeled as a network flow problem and solved by means of a specialized minimum cost network flow algorithm, as described in section 3. The inven tory routing problem captures the basic characteristics of situations where vendor managed resupply may be used, and methodologies developed for. Demand forecasting i time series analysis chris caplice esd. It needs to be solved to design a strategy that realizes the. Pdf inventory problems and solutions are a good way to achieve details about operating certainproducts.
Given a set of customers, a set of possible depots and a set of periods, the goal of this problem is to choose simultaneously the location of the depots, to decide the inventory policies for. Rational problem solving is a constructive problemsolving style that is defined as the rational, deliberate, and systematic application of effective problemsolving skills. The inventory routing problem addresses the coordination of inventory management and transportation. An inventoryrouting problem with pickups and deliveries. The irp arises in the context of vendormanaged inventory vmi, a business practice aimed at reducing logistics costs and adding business. Meta heuristic for multi depot inventory routing problem. Location routing inventory problem withtranshipment points. Expanding the conceptualization and measurement of applied problem solving and coping. The inventory routing problem 1 university of iowa. A tabu search heuristic for the inventory routing problem karine cousineauouimet, department of quantitative methods ecole des hautes etudes commerciales montreal, canada mailto. In this tutorial paper, we introduce the inventory routing problems irps with examples, we classify the characteristics of an irp and present different models and policies for the class of.
The problem involves a central depot as well as various satellite facilities which the drivers can visit during their shift to re. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The vehicle routing problem is characterized by heterogeneous vehicles, split deliveries, discrete time windows, linehaul, and backhaul operations. Study on model and algorithm of inventory routing problem. Psychometric properties in english and spanishspeaking populations brian d. We present a mathematical formulation for this problem and develop a metaheuristic framework based on adaptive large neighborhood search to obtain good solutions for this class of problem. The purpose of this paper is to introduce, model, and solve a rich multiperiod inventoryrouting problem with pickups and deliveries motivated by the replenishment of automated teller machines in the netherlands.
Open university of catalonia rochester institute of technology. The inventory routing problem is closely related to the problem faced in this study, as the deterioration process of a site closely resembles the consumption of inventory at a customer, and a. This paper introduces the inventory routing problem with transshipment irpt. In this tutorial paper, we introduce the inventory routing problems irps with examples, we classify the characteristics of an irp and present. Delivery cost approximations for inventory routing. Constraints are the setup forcing and production capacity constraints. A pricedirected approach to stochastic inventoryrouting.
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