Inventory optimization of distribution networks with discrete-event processes by vendor-managed policies

The objective of this work is to study optimal Vendor-Managed Inventory policies in distributions systems in which demand and delivery processes are characterized by a discreteevent dynamics. In Vendor-Managed Inventory policies, the supplier organizes the deliveries to the customer in order to satisfy its demand by minimizing transportation costs and holding costs of the customer. In the considered case, a simple network composed of one supplier and one customer is studied, in which the supplier can use a limited number of capacitated vehicles; the objective is to plan the delivery policy over a finite horizon. The optimization problem resulting from the considered system characterized by discrete-event processes is then rewritten in a discrete-time form. For this problem different solution methods are proposed in the paper, based on the statement of mathematical programming problems and the definition of appropriate algorithms. These methods are then compared through some experimental results.