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

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  • Oğuz Solyalı

    (Department of Industrial Engineering, Middle East Technical University, Ankara 06531, Turkey)

  • Haldun Süral

    (Department of Industrial Engineering, Middle East Technical University, Ankara 06531, Turkey)

Abstract

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.

Suggested Citation

  • Oğuz Solyalı & Haldun Süral, 2011. "A Branch-and-Cut Algorithm Using a Strong Formulation and an A Priori Tour-Based Heuristic for an Inventory-Routing Problem," Transportation Science, INFORMS, vol. 45(3), pages 335-345, August.
    • Handle: RePEc:inm:ortrsc:v:45:y:2011:i:3:p:335-345
    DOI: 10.1287/trsc.1100.0354
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    References listed on IDEAS

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    Cited by:

    1. Yves Crama & Mahmood Rezaei & Martin Savelsbergh & Tom Van Woensel, 2018. "Stochastic Inventory Routing for Perishable Products," Transportation Science, INFORMS, vol. 52(3), pages 526-546, June.
    2. Oualid Guemri & Abdelghani Bekrar & Bouziane Beldjilali & Damien Trentesaux, 2016. "GRASP-based heuristic algorithm for the multi-product multi-vehicle inventory routing problem," 4OR, Springer, vol. 14(4), pages 377-404, December.
    3. Zhouxing Su & Zhipeng Lü & Zhuo Wang & Yanmin Qi & Una Benlic, 2020. "A Matheuristic Algorithm for the Inventory Routing Problem," Transportation Science, INFORMS, vol. 54(2), pages 330-354, March.
    4. 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.
    5. Ali Ekici & Okan Örsan Özener, 2020. "Inventory routing for the last mile delivery of humanitarian relief supplies," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(3), pages 621-660, September.
    6. Cárdenas-Barrón, Leopoldo Eduardo & González-Velarde, José Luis & Treviño-Garza, Gerardo & Garza-Nuñez, Dagoberto, 2019. "Heuristic algorithm based on reduce and optimize approach for a selective and periodic inventory routing problem in a waste vegetable oil collection environment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 44-59.
    7. Emre Çankaya & Ali Ekici & Okan Örsan Özener, 2019. "Humanitarian relief supplies distribution: an application of inventory routing problem," Annals of Operations Research, Springer, vol. 283(1), pages 119-141, December.
    8. Pasquale Avella & Maurizio Boccia & Laurence A. Wolsey, 2018. "Single-Period Cutting Planes for Inventory Routing Problems," Transportation Science, INFORMS, vol. 52(3), pages 497-508, June.

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