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Inventory-routing model, for a multi-period problem with stochastic and deterministic demand


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    The need for integration in the supply chain management leads us to consider the coordination of two logistic planning functions: transportation and inventory. The coordination of these activities can be an extremely important source of competitive advantage in the supply chain management. The battle for cost reduction can pass through the equilibrium of transportation versus inventory managing costs. In this work, we study the specific case of an inventory-routing problem for a week planning period with different types of demand. A heuristic methodology, based on the Iterated Local Search, is proposed to solve the Multi-Period Inventory Routing Problem with stochastic and deterministic demand.

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    Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 725.

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    Date of creation: Nov 2003
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    Handle: RePEc:upf:upfgen:725

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    Keywords: Inventory-Routing; iterated local search; logistics;

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