IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v91y2016icp290-305.html
   My bibliography  Save this article

A robust inventory routing policy under inventory inaccuracy and replenishment lead-time

Author

Listed:
  • Li, Ming
  • Wang, Zheng
  • Chan, Felix T.S.

Abstract

In this paper, we study an inventory routing problem under replenishment lead-time and inventory inaccuracy, which exist extensively in distribution systems for fresh products, but are often ignored in existing research. To solve the problem, a robust inventory routing policy is developed in three steps. At first, we propose the methods of updating the probability of the current net inventory and predicting those in future periods. For each candidate route, we develop a Robust TQL Algorithm to optimize the replenishment time, replenishment quantity and replenishment stage length. Finally, a genetic algorithm-based method is developed to optimize the delivery route.

Suggested Citation

  • Li, Ming & Wang, Zheng & Chan, Felix T.S., 2016. "A robust inventory routing policy under inventory inaccuracy and replenishment lead-time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 290-305.
    • Handle: RePEc:eee:transe:v:91:y:2016:i:c:p:290-305
    DOI: 10.1016/j.tre.2016.05.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554515303252
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2016.05.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:hal:journl:hal-02313029 is not listed on IDEAS
    2. Leroy B. Schwarz & James E. Ward & Xin Zhai, 2006. "On the Interactions Between Routing and Inventory-Management Policies in a One-Warehouse N-Retailer Distribution System," Manufacturing & Service Operations Management, INFORMS, vol. 8(3), pages 253-272, September.
    3. Agra, Agostinho & Christiansen, Marielle & Delgado, Alexandrino & Simonetti, Luidi, 2014. "Hybrid heuristics for a short sea inventory routing problem," European Journal of Operational Research, Elsevier, vol. 236(3), pages 924-935.
    4. Zhang, Ying & Qi, Mingyao & Miao, Lixin & Liu, Erchao, 2014. "Hybrid metaheuristic solutions to inventory location routing problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 305-323.
    5. Lars Magnus Hvattum & Arne Løkketangen & Gilbert Laporte, 2009. "Scenario Tree-Based Heuristics for Stochastic Inventory-Routing Problems," INFORMS Journal on Computing, INFORMS, vol. 21(2), pages 268-285, May.
    6. Raa, Birger & Aghezzaf, El-Houssaine, 2008. "Designing distribution patterns for long-term inventory routing with constant demand rates," International Journal of Production Economics, Elsevier, vol. 112(1), pages 255-263, March.
    7. A. Gürhan Kök & Kevin H. Shang, 2007. "Inspection and Replenishment Policies for Systems with Inventory Record Inaccuracy," Manufacturing & Service Operations Management, INFORMS, vol. 9(2), pages 185-205, February.
    8. Raa, Birger & Aghezzaf, El-Houssaine, 2009. "A practical solution approach for the cyclic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 192(2), pages 429-441, January.
    9. Agrawal, Paras M. & Sharda, Ramesh, 2012. "Impact of frequency of alignment of physical and information system inventories on out of stocks: A simulation study," International Journal of Production Economics, Elsevier, vol. 136(1), pages 45-55.
    10. Niakan, Farzad & Rahimi, Mohammad, 2015. "A multi-objective healthcare inventory routing problem; a fuzzy possibilistic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 74-94.
    11. Yacine Rekik, 2011. "Inventory inaccuracies in the wholesale supply chain," Post-Print hal-02312498, HAL.
    12. Sahin, Evren & Dallery, Yves, 2009. "Assessing the impact of inventory inaccuracies within a Newsvendor framework," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1108-1118, September.
    13. Rekik, Yacine, 2011. "Inventory inaccuracies in the wholesale supply chain," International Journal of Production Economics, Elsevier, vol. 133(1), pages 172-181, September.
    14. Nicole DeHoratius & Ananth Raman, 2008. "Inventory Record Inaccuracy: An Empirical Analysis," Management Science, INFORMS, vol. 54(4), pages 627-641, April.
    15. Kök, A. Gürhan & Shang, Kevin H., 2014. "Evaluation of cycle-count policies for supply chains with inventory inaccuracy and implications on RFID investments," European Journal of Operational Research, Elsevier, vol. 237(1), pages 91-105.
    16. Lap Mui Ann Chan & David Simchi-Levi, 1998. "Probabilistic Analyses and Algorithms for Three-Level Distribution Systems," Management Science, INFORMS, vol. 44(11-Part-1), pages 1562-1576, November.
    17. AGHEZZAF, El-Houssaine & RAA, Birger & VAN LANDEGHEM, Hendrik, 2006. "Modeling inventory routing problems in supply chains of high consumption products," LIDAM Reprints CORE 1786, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Marielle Christiansen, 1999. "Decomposition of a Combined Inventory and Time Constrained Ship Routing Problem," Transportation Science, INFORMS, vol. 33(1), pages 3-16, February.
    19. Yu, Yugang & Chen, Haoxun & Chu, Feng, 2008. "A new model and hybrid approach for large scale inventory routing problems," European Journal of Operational Research, Elsevier, vol. 189(3), pages 1022-1040, September.
    20. Chang, Seokcheol & Klabjan, Diego & Vossen, Thomas, 2010. "Optimal radio frequency identification deployment in a supply chain network," International Journal of Production Economics, Elsevier, vol. 125(1), pages 71-83, May.
    21. Rekik, Yacine & Sahin, Evren & Dallery, Yves, 2009. "Inventory inaccuracy in retail stores due to theft: An analysis of the benefits of RFID," International Journal of Production Economics, Elsevier, vol. 118(1), pages 189-198, March.
    22. Aghezzaf, El-Houssaine & Raa, Birger & Van Landeghem, Hendrik, 2006. "Modeling inventory routing problems in supply chains of high consumption products," European Journal of Operational Research, Elsevier, vol. 169(3), pages 1048-1063, March.
    23. Nicole DeHoratius & Adam J. Mersereau & Linus Schrage, 2008. "Retail Inventory Management When Records Are Inaccurate," Manufacturing & Service Operations Management, INFORMS, vol. 10(2), pages 257-277, November.
    24. Huang, Shan-Huen & Lin, Pei-Chun, 2010. "A modified ant colony optimization algorithm for multi-item inventory routing problems with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 598-611, September.
    25. Vishal Gaur & Marshall L. Fisher, 2004. "A Periodic Inventory Routing Problem at a Supermarket Chain," Operations Research, INFORMS, vol. 52(6), pages 813-822, December.
    26. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ng, ManWo & Lo, Hong K., 2016. "Robust models for transportation service network design," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 378-386.
    2. Shang, Xiaoting & Zhang, Guoqing & Jia, Bin & Almanaseer, Mohammed, 2022. "The healthcare supply location-inventory-routing problem: A robust approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    3. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    4. Agostinho Agra & Marielle Christiansen & Lars Magnus Hvattum & Filipe Rodrigues, 2018. "Robust Optimization for a Maritime Inventory Routing Problem," Transportation Science, INFORMS, vol. 52(3), pages 509-525, June.
    5. Rahimi, Mohammad & Baboli, Armand & Rekik, Yacine, 2017. "Multi-objective inventory routing problem: A stochastic model to consider profit, service level and green criteria," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 59-83.
    6. Ji, Ying & Du, Jianhui & Han, Xiaoya & Wu, Xiaoqing & Huang, Ripeng & Wang, Shilei & Liu, Zhimin, 2020. "A mixed integer robust programming model for two-echelon inventory routing problem of perishable products," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 548(C).
    7. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    8. Jafarian, Ahmad & Asgari, Nasrin & Mohri, Seyed Sina & Fatemi-Sadr, Elham & Farahani, Reza Zanjirani, 2019. "The inventory-routing problem subject to vehicle failure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 254-294.
    9. Ensafian, Hamidreza & Yaghoubi, Saeed, 2017. "Robust optimization model for integrated procurement, production and distribution in platelet supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 32-55.
    10. Bender, Matthias & Meyer, Anne & Kalcsics, Jörg & Nickel, Stefan, 2016. "The multi-period service territory design problem – An introduction, a model and a heuristic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 135-157.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cannella, Salvatore & Dominguez, Roberto & Framinan, Jose M., 2017. "Inventory record inaccuracy – The impact of structural complexity and lead time variability," Omega, Elsevier, vol. 68(C), pages 123-138.
    2. Wang, Fuqiang & Fang, Xiaoping & Chen, Xiaohong & Li, Xihua, 2016. "Impact of inventory inaccuracies on products with inventory-dependent demand," International Journal of Production Economics, Elsevier, vol. 177(C), pages 118-130.
    3. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    4. Jafarian, Ahmad & Asgari, Nasrin & Mohri, Seyed Sina & Fatemi-Sadr, Elham & Farahani, Reza Zanjirani, 2019. "The inventory-routing problem subject to vehicle failure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 254-294.
    5. Cannella, Salvatore & Framinan, Jose M. & Bruccoleri, Manfredi & Barbosa-Póvoa, Ana Paula & Relvas, Susana, 2015. "The effect of Inventory Record Inaccuracy in Information Exchange Supply Chains," European Journal of Operational Research, Elsevier, vol. 243(1), pages 120-129.
    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. Feng Tao & Tijun Fan & Kin Keung Lai & Lin Li, 2017. "Impact of RFID technology on inventory control policy," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(2), pages 207-220, February.
    8. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    9. Dai, Hongyan & Li, Jianbin & Yan, Nina & Zhou, Weihua, 2016. "Bullwhip effect and supply chain costs with low- and high-quality information on inventory shrinkage," European Journal of Operational Research, Elsevier, vol. 250(2), pages 457-469.
    10. Raa, Birger & Aouam, Tarik, 2021. "Multi-vehicle stochastic cyclic inventory routing with guaranteed replenishments," International Journal of Production Economics, Elsevier, vol. 234(C).
    11. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    12. Fan, Tijun & Tao, Feng & Deng, Sheng & Li, Shuxia, 2015. "Impact of RFID technology on supply chain decisions with inventory inaccuracies," International Journal of Production Economics, Elsevier, vol. 159(C), pages 117-125.
    13. Shabani, Amir & Maroti, Gabor & de Leeuw, Sander & Dullaert, Wout, 2021. "Inventory record inaccuracy and store-level performance," International Journal of Production Economics, Elsevier, vol. 235(C).
    14. Xu, Jinpeng & Jiang, Wei & Feng, Gengzhong & Tian, Jun, 2012. "Comparing improvement strategies for inventory inaccuracy in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 221(1), pages 213-221.
    15. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    16. Diego Cattaruzza & Nabil Absi & Dominique Feillet, 2018. "Vehicle routing problems with multiple trips," Annals of Operations Research, Springer, vol. 271(1), pages 127-159, December.
    17. Rekik, Yacine & Syntetos, Aris & Jemai, Zied, 2015. "An e-retailing supply chain subject to inventory inaccuracies," International Journal of Production Economics, Elsevier, vol. 167(C), pages 139-155.
    18. Diego Cattaruzza & Nabil Absi & Dominique Feillet, 2016. "Vehicle routing problems with multiple trips," 4OR, Springer, vol. 14(3), pages 223-259, September.
    19. Agra, Agostinho & Christiansen, Marielle & Wolsey, Laurence, 2022. "Improved models for a single vehicle continuous-time inventory routing problem with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 297(1), pages 164-179.
    20. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:91:y:2016:i:c:p:290-305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.