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Cyclic Delivery Schedules for an Inventory Routing Problem

Author

Listed:
  • Ali Ekici

    (Department of Industrial Engineering, Ozyegin University, Istanbul, 34794 Turkey)

  • Okan Örsan Özener

    (Department of Industrial Engineering, Ozyegin University, Istanbul, 34794 Turkey)

  • Gültekin Kuyzu

    (Department of Industrial Engineering, TOBB University of Economics and Technology, Ankara, 06560 Turkey)

Abstract

We consider an inventory routing problem where a common vendor is responsible for replenishing the inventories of several customers over a perpetual time horizon. The objective of the vendor is to minimize the total cost of transportation of a single product from a single depot to a set of customers with deterministic and stationary consumption rates over a planning horizon while avoiding stock-outs at the customer locations. We focus on constructing a repeatable (cyclic) delivery schedule for the product delivery. We propose a novel algorithm, called the Iterative Clustering-Based Constructive Heuristic Algorithm , to solve the problem in two stages: (i) clustering, and (ii) delivery schedule generation. To test the performance of the proposed algorithm in terms of solution quality and computational efficiency, we perform a computational study on both randomly generated instances and real-life instances provided by an industrial gases manufacturer. We also compare the performance of the proposed algorithm against an algorithm developed for general routing problems.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:ortrsc:v:49:y:2015:i:4:p:817-829
    DOI: 10.1287/trsc.2014.0538
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    References listed on IDEAS

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    Cited by:

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    2. 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).
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    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. Bertazzi, Luca & Laganà, Demetrio & Ohlmann, Jeffrey W. & Paradiso, Rosario, 2020. "An exact approach for cyclic inbound inventory routing in a level production system," European Journal of Operational Research, Elsevier, vol. 283(3), pages 915-928.
    9. Griffin, Emily C. & Keskin, Burcu B. & Allaway, Arthur W., 2023. "Clustering retail stores for inventory transshipment," European Journal of Operational Research, Elsevier, vol. 311(2), pages 690-707.

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