A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem

Date

2011-08-01

Author

Solyali, Oguz
Süral, Haldun

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

152
views

0
downloads

We address a vendor-managed inventory-routing problem where a supplier ( vendor) receives a given amount of a single product each period and distributes it to multiple retailers over a finite time horizon using a capacitated vehicle. Each retailer faces external dynamic demand and is controlled by a deterministic order-up-to level policy requiring that the supplier raise the retailer's inventory level to a predetermined maximum in each replenishment. The problem is deciding on when and in what sequence to visit the retailers such that systemwide inventory holding and routing costs are minimized. We propose a branch-and-cut algorithm and a heuristic based on an a priori tour using a strong formulation. To the best of our knowledge, this study is the first to consider a strong formulation for the inventory replenishment part of inventory-routing problems. Computational results reveal that the new branch-and-cut algorithm and heuristic perform better than those noted in the literature.

Subject Keywords

Supply chain management, Inventory-routing problem, Branch-and-cut, Integer programming, Heuristics

URI

https://hdl.handle.net/11511/38604

Journal

TRANSPORTATION SCIENCE

DOI

https://doi.org/10.1287/trsc.1100.0354

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

A multi-phase heuristic for the production routing problem Solyali, Oguz; Süral, Haldun (2017-11-01) This study considers the production routing problem where a plant produces and distributes a single item to multiple retailers over a multi-period time horizon. The problem is to decide on when and how much to produce and stock at the plant, when and how much to serve and stock at each retailer, and vehicle routes for shipments such that the sum of fixed production setup cost, variable production cost, distribution cost, and inventory carrying cost at the plant and retailers is minimized. A multi-phase heur...
An Effective Matheuristic for the Multivehicle Inventory Routing Problem Solyalı, Oguz; Süral, Haldun (2022-07-01) Copyright: © 2022 INFORMS.This study considers the multivehicle inventory routing problem in which a supplier has to build a distribution plan over a discrete time horizon to replenish a set of customers that faces a given demand. Transportation costs as well as inventory costs at the supplier and at the customers are to be minimized. A matheuristic algorithm is proposed that is based on sequentially solving different mixed integer linear programs. The algorithm merges the advantage of being easy to design ...
Robust Inventory Routing Under Demand Uncertainty Solyali, Oguz; Cordeau, Jean-Francois; Laporte, Gilbert (2012-08-01) This paper introduces a robust inventory routing problem where a supplier distributes a single product to multiple customers facing dynamic uncertain demands over a finite discrete time horizon. The probability distribution of the uncertain demand at each customer is not fully specified. The only available information is that these demands are independent and symmetric random variables that can take some value from their support interval. The supplier is responsible for the inventory management of its custo...
The one-warehouse multi-retailer problem: reformulation, classification, and computational results Solyali, Oguz; Süral, Haldun (2012-07-01) We consider the one-warehouse multi-retailer problem where a warehouse replenishes multiple retailers with deterministic dynamic demands over a horizon. The problem is to determine when and how much to order to the warehouse and retailers such that the total system-wide costs are minimized. We propose a new (combined transportation and shortest path based) integer programming reformulation for the problem in addition to the echelon stock and transportation based formulations in the literature. We analyze th...
A MULTI OBJECTIVE MODEL FOR OPTIMIZATION OF A GREEN SUPPLY CHAIN NETWORK PAKSOY, TURAN; Ozceylan, Eren; Weber, Gerhard Wilhelm (2010-02-04) This study develops a model of a closed-loop supply chain (CLSC) network which starts with the suppliers and recycles with the decomposition centers. As a traditional network design, we consider minimizing the all transportation costs and the raw material purchasing costs. To pay attention for the green impacts, different transportation choices are presented between echelons according to their CO2 emissions. The plants can purchase different raw materials in respect of their recyclable ratios. The focuses o...

Citation Formats

O. Solyali and H. Süral, “A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem,” TRANSPORTATION SCIENCE, pp. 335–345, 2011, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38604.