Robust Inventory Routing Under Demand Uncertainty

Download

index.pdf

Date

2012-08-01

Author

Solyali, Oguz
Cordeau, Jean-Francois
Laporte, Gilbert

Metadata

Show full item record

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

Item Usage Stats

204
views

0
downloads

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 customers, has sufficient inventory to replenish the customers, and distributes the product using a capacitated vehicle. Backlogging of the demand at customers is allowed. The problem is to determine the delivery quantities as well as the times and routes to the customers, while ensuring feasibility regardless of the realized demands, and minimizing the total cost composed of transportation, inventory holding, and shortage costs. Using a robust optimization approach, we propose two robust mixed integer programming (MIP) formulations for the problem. We also propose a new MIP formulation for the deterministic (nominal) case of the problem. We implement these formulations within a branch-and-cut algorithm and report results on a set of instances adapted from the literature.

Subject Keywords

Inventory routing problem, Lot sizing, Robust optimization, Integer programming, Branch-and-cut

URI

https://hdl.handle.net/11511/66605

Journal

TRANSPORTATION SCIENCE

DOI

https://doi.org/10.1287/trsc.1110.0387

Collections

Economics and Administrative Sciences, Article

Suggestions

OpenMETU
Core

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 ...
The Impact of Modeling on Robust Inventory Management Under Demand Uncertainty Solyali, Oguz; Cordeau, Jean-Francois; Laporte, Gilbert (2016-04-01) This study considers a basic inventory management problem with nonzero fixed order costs under interval demand uncertainty. The existing robust formulations obtained by applying well-known robust optimization methodologies become computationally intractable for large problem instances due to the presence of binary variables. This study resolves this intractability issue by proposing a new robust formulation that is shown to be solvable in polynomial time when the initial inventory is zero or negative. Becau...
A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem Solyali, Oguz; Süral, Haldun (2011-08-01) 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 v...
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...
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...

Citation Formats

O. Solyali, J.-F. Cordeau, and G. Laporte, “Robust Inventory Routing Under Demand Uncertainty,” TRANSPORTATION SCIENCE, pp. 327–340, 2012, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/66605.