The multiple retailer inventory routing problem with backorders

Alişan, Onur
In this study we consider an inventory routing problem in which a supplier distributes a single product to multiple retailers in a finite planning horizon. Retailers should satisfy the deterministic and dynamic demands of end customers in the planning horizon, but the retailers can backorder the demands of end customers considering the supply chain costs. In each period the supplier decides the retailers to be visited, and the amount of products to be supplied to each retailer by a fleet of vehicles. The decision problems of the supplier are about when, to whom and how much to deliver products, and in which order to visit retailers while minimizing system-wide costs. We propose a mixed integer programming model and a Lagrangian relaxation based solution approach in which both upper and lower bounds are computed. We test our solution approach with test instances taken from the literature and provide our computational results.


An integrated inventory control and vehicle routing problem
Solyalı, Oğuz; Süral, Haldun; Department of Industrial Engineering (2005)
In this study, we consider a logistics system, in which a single supplier delivers a product to multiple retailers over a finite time horizon. Supplier decides on the amount to order in each period and services retailers facing deterministic dynamic demand via a fleet of vehicles having limited capacity. Each retailer has specific minimum and maximum levels of inventory in an order-up-to level inventory policy setting. The problem is to simultaneously determine the quantity of product to order to the suppli...
Limited quantity flexibility in a decentralized supply chain
Karakaya, Selçuk; Bakal, İsmail Serdar; Department of Industrial Engineering (2010)
In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells two products in a single period. The products offered by the retailer consist of families of closely related products, which differ from each other in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify his initial order after receiving perfect demand in...
The inventory routing problem with deterministic order-up-to level inventory policies
Pınar, Özlem; Süral, Haldun; Department of Industrial Engineering (2005)
This study is concerned with the inventory routing problem with deterministic, dynamic demand and order-up-to level inventory policy. The problem mainly arises in the supply chain management context. It incorporates simultaneous decision making on inventory management and vehicle routing with the purpose of gaining advantage from coordinated decisions. An integrated mathematical model that represents the features of the problem is presented. Due to the magnitude of the model, lagrangean relaxation solution ...
Optimal pricing and production decisions in reusable container systems
Atamer, Büşra; Bakal, İsmail Serdar; Department of Industrial Engineering (2010)
In this study, we focus on pricing and production decisions in reusable container systems with stochastic demand. We consider a producer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers, (ii) returned containers from customers. Customers purchasing the products may return the containers to the producer to receive a deposit price. The return quantity depends on both customer demand and the deposit price determined by the producer. Hence, th...
Managing production and lead time quotation with multiple demand classes
Sayın, Ece; Savaşaneril Tüfekci, Seçil; Department of Industrial Engineering (2010)
In this study, we investigate several facets of a due-date quotation problem and develop a model considering jointly due-date quotation, order acceptance and base-stock decisions in a hybrid make-to-stock (MTS) / make-to-order (MTO) and multi-class system with lead time sensitive Poisson demand and exponentially distributed service times. We seek to maximize profit considering lateness penalties and holding costs in the model. We consider three alternative due-date quotation policies each having different p...
Citation Formats
O. Alişan, “The multiple retailer inventory routing problem with backorders,” M.S. - Master of Science, Middle East Technical University, 2008.