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Performance Measurement for Inventory Routing

Author

Listed:
  • Jin-Hwa Song

    (The Logistics Institute, School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205)

  • Martin Savelsbergh

    (The Logistics Institute, School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332-0205)

Abstract

We develop technology to measure the effectiveness of distribution strategies for inventory routing. Popular, practical performance measures, such as volume delivered per mile, are effective in measuring relative performance but inadequate in measuring absolute performance. We develop a methodology that allows the computation of tight lower bounds on the total mileage required to satisfy customer demand over time. As a result, companies will be able to gain insight into the effectiveness of their distribution strategy.

Suggested Citation

  • Jin-Hwa Song & Martin Savelsbergh, 2007. "Performance Measurement for Inventory Routing," Transportation Science, INFORMS, vol. 41(1), pages 44-54, February.
    • Handle: RePEc:inm:ortrsc:v:41:y:2007:i:1:p:44-54
    DOI: 10.1287/trsc.1060.0175
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Felipe Lagos & Natashia Boland & Martin Savelsbergh, 2020. "The Continuous-Time Inventory-Routing Problem," Transportation Science, INFORMS, vol. 54(2), pages 375-399, March.
    2. Vidal, Thibaut & Laporte, Gilbert & Matl, Piotr, 2020. "A concise guide to existing and emerging vehicle routing problem variants," European Journal of Operational Research, Elsevier, vol. 286(2), pages 401-416.
    3. Ali Ekici & Okan Örsan Özener & Gültekin Kuyzu, 2015. "Cyclic Delivery Schedules for an Inventory Routing Problem," Transportation Science, INFORMS, vol. 49(4), pages 817-829, November.
    4. Moon, Ilkyeong & Feng, Xuehao, 2017. "Supply chain coordination with a single supplier and multiple retailers considering customer arrival times and route selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 78-97.
    5. Thierry Benoist & Frédéric Gardi & Antoine Jeanjean & Bertrand Estellon, 2011. "Randomized Local Search for Real-Life Inventory Routing," Transportation Science, INFORMS, vol. 45(3), pages 381-398, August.
    6. Li, Jianxiang & Chen, Haoxun & Chu, Feng, 2010. "Performance evaluation of distribution strategies for the inventory routing problem," European Journal of Operational Research, Elsevier, vol. 202(2), pages 412-419, April.
    7. Jeffrey W. Ohlmann & Michael J. Fry & Barrett W. Thomas, 2008. "Route Design for Lean Production Systems," Transportation Science, INFORMS, vol. 42(3), pages 352-370, August.
    8. Okan Örsan Özener & Özlem Ergun & Martin Savelsbergh, 2013. "Allocating Cost of Service to Customers in Inventory Routing," Operations Research, INFORMS, vol. 61(1), pages 112-125, February.

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