A shortfall modelling-based solution approach for stochastic cyclic inventory routing

This paper studies the cyclic inventory routing problem with stochastic demand. A geographically dispersed set of retailers demand rates is replenished from a single depot using vehicles limited capacity. For an infinite horizon, fixed-partition policy adopted that partitions into subsets are always together in same route being cyclically repeated. The objective to provide cost efficient buffering variability within distribution plan by providing carefully calibrated safety stock levels at retailers. In doing so, vehicle capacity needs be taken account, since cumulative during cycle may exceed this case, shortfall remains retailer inventories because they not fully replenished, which affects service level (and balance) consecutive cycle(s). An approximate method presented for determining and integrated state-of-the-art metaheuristic solution approach routing. illustrative example experiments on benchmark instances show (i) effect balance route, (ii) accuracy approximation, (iii) added value taking due account design.