A solution algorithm for integrated production-inventory-routing of perishable goods with transshipment and uncertain demand

Abstract Supply and distribution management of blood products is a challenging task due to their short lifespan. The problem even more sophisticated considering uncertain demand for these products. This paper addresses integrated inventory-routing in supply chain network consisting single supplier group centers. Transshipment among centers allowed decrease the cost excess inventory shortage goods. A mathematical model developed that decides on optimal quantity supplied blood, delivery plan, level, transshipped between with objective minimizing total costs. In addition, robust optimization approach adopted deal uncertainty demand. Since proposed NP-hard, heuristic solution algorithm improves quality by determining most efficient change vehicle routes each search stage. efficiency examined set numerical experiments using data from real case platelets. results indicated allowing transshipment reduces need capacity at supplier, product shortage, cost.