IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v36y2002i1p119-132.html
   My bibliography  Save this article

Deterministic Order-Up-To Level Policies in an Inventory Routing Problem

Author

Listed:
  • Luca Bertazzi

    (Dip. di Metodi Quantitativi, Università di Brescia, Italy)

  • Giuseppe Paletta

    (Dip. di Economia Politica, Università della Calabria, Italy)

  • M. Grazia Speranza

    (Dip. di Metodi Quantitativi, Università di Brescia, Italy)

Abstract

We consider a distribution problem in which a set of products has to be shipped from a supplier to several retailers in a given time horizon. Shipments from the supplier to the retailers are performed by a vehicle of given capacity and cost. Each retailer determines a minimum and a maximum level of the inventory of each product, and each must be visited before its inventory reaches the minimum level. Every time a retailer is visited, the quantity of each product delivered by the supplier is such that the maximum level of the inventory is reached at the retailer. The problem is to determine for each discrete time instant the retailers to be visited and the route of the vehicle. Various objective functions corresponding to different decision policies, and possibly to different decision makers, are considered. We present a heuristic algorithm and compare the solutions obtained with the different objective functions on a set of randomly generated problem instances.

Suggested Citation

  • Luca Bertazzi & Giuseppe Paletta & M. Grazia Speranza, 2002. "Deterministic Order-Up-To Level Policies in an Inventory Routing Problem," Transportation Science, INFORMS, vol. 36(1), pages 119-132, February.
    • Handle: RePEc:inm:ortrsc:v:36:y:2002:i:1:p:119-132
    DOI: 10.1287/trsc.36.1.119.573
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.36.1.119.573
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.36.1.119.573?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
    ---><---

    References listed on IDEAS

    as
    1. Moshe Dror & Michael Ball, 1987. "Inventory/routing: Reduction from an annual to a short‐period problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 34(6), pages 891-905, December.
    2. Bertazzi, Luca & Speranza, Maria Grazia & Ukovich, Walter, 1997. "Minimization of logistic costs with given frequencies," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 327-340, August.
    3. S. Anily & A. Federgruen, 1990. "One Warehouse Multiple Retailer Systems with Vehicle Routing Costs," Management Science, INFORMS, vol. 36(1), pages 92-114, January.
    4. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    5. 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.
    6. Axsater, Sven & Rosling, Kaj, 1994. "Multi-level production-inventory control: Material requirements planning or reorder point policies?," European Journal of Operational Research, Elsevier, vol. 75(2), pages 405-412, June.
    7. Awi Federgruen & Paul Zipkin, 1984. "A Combined Vehicle Routing and Inventory Allocation Problem," Operations Research, INFORMS, vol. 32(5), pages 1019-1037, October.
    Full references (including those not matched with items on IDEAS)

    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. Claudia Archetti & Luca Bertazzi & Gilbert Laporte & Maria Grazia Speranza, 2007. "A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem," Transportation Science, INFORMS, vol. 41(3), pages 382-391, August.
    2. N H Moin & S Salhi, 2007. "Inventory routing problems: a logistical overview," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1185-1194, September.
    3. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2002. "The Stochastic Inventory Routing Problem with Direct Deliveries," Transportation Science, INFORMS, vol. 36(1), pages 94-118, February.
    4. Zhao, Qiu-Hong & Wang, Shou-Yang & Lai, K.K., 2007. "A partition approach to the inventory/routing problem," European Journal of Operational Research, Elsevier, vol. 177(2), pages 786-802, March.
    5. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    6. Luca Bertazzi, 2008. "Analysis of Direct Shipping Policies in an Inventory-Routing Problem with Discrete Shipping Times," Management Science, INFORMS, vol. 54(4), pages 748-762, April.
    7. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2004. "Dynamic Programming Approximations for a Stochastic Inventory Routing Problem," Transportation Science, INFORMS, vol. 38(1), pages 42-70, February.
    8. Luca Bertazzi & Maria Grazia Speranza & Walter Ukovich, 2000. "Exact and Heuristic Solutions for a Shipment Problem with Given Frequencies," Management Science, INFORMS, vol. 46(7), pages 973-988, July.
    9. Pan, Zhendong & Tang, Jiafu & Fung, Richard Y.K., 2009. "Synchronization of inventory and transportation under flexible vehicle constraint: A heuristics approach using sliding windows and hierarchical tree structure," European Journal of Operational Research, Elsevier, vol. 192(3), pages 824-836, February.
    10. Ali Diabat & Tarek Abdallah & Tung Le, 2016. "A hybrid tabu search based heuristic for the periodic distribution inventory problem with perishable goods," Annals of Operations Research, Springer, vol. 242(2), pages 373-398, July.
    11. 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.
    12. 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.
    13. Luca Bertazzi & Maria Grazia Speranza, 1999. "Minimizing logistic costs in multistage supply chains," Naval Research Logistics (NRL), John Wiley & Sons, vol. 46(4), pages 399-417, June.
    14. Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
    15. Jia Shu, 2010. "An Efficient Greedy Heuristic for Warehouse-Retailer Network Design Optimization," Transportation Science, INFORMS, vol. 44(2), pages 183-192, May.
    16. Herer, Yale T. & Levy, Roberto, 1997. "The Metered Inventory Routing Problem, an integrative heuristic algorithm," International Journal of Production Economics, Elsevier, vol. 51(1-2), pages 69-81, August.
    17. 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).
    18. Oğuz Solyalı & Jean-François Cordeau & Gilbert Laporte, 2012. "Robust Inventory Routing Under Demand Uncertainty," Transportation Science, INFORMS, vol. 46(3), pages 327-340, August.
    19. le Blanc, H.M. & Cruijssen, F. & Fleuren, H.A. & de Koster, M.B.M., 2006. "Factory gate pricing: An analysis of the Dutch retail distribution," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1950-1967, November.
    20. Raa, Birger, 2015. "Fleet optimization for cyclic inventory routing problems," International Journal of Production Economics, Elsevier, vol. 160(C), pages 172-181.

    More about this item

    Statistics

    Access and download statistics

    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:inm:ortrsc:v:36:y:2002:i:1:p:119-132. 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.