In this paper we observe the extension of the vehicle routing problem (VRP) in fuel delivery that includes petrol stations inventory management and which can be classified as the Inventory Routing Problem (IRP) in fuel delivery. The objective of the IRP is to minimize the total cost of vehicle routing and inventory management. We developed a Variable Neighborhood Search (VNS) heuristic for solv...

A great loss of transportation capacity has been caused in auto parts supply logistics due to the independent from suppliers (APSs) automobile production line (APL). It is believed that establishing distribution centers (DCs) for centralized collection and unified one effective way address this problem. This paper proposes a framework simultaneously considering location-inventory-routing proble...

In this paper, we describe research to improve Frito-Lay’s outbound supply chain activities by simultaneously optimizing its inventory and transportation decisions. Motivated by Frito-Lay’s practice, we first develop a mixed-integer programming formulation from which we develop a large-scale, integrated multiproduct inventory lot-sizing and vehicle-routing model with explicit (1) inventory hold...

Vendor managed inventory replenishment is a business practice in which vendors monitor their customers’ inventories, and decide when and how much inventory should be replenished. The inventory routing problem addresses the coordination of inventory management and transportation. The ability to solve the inventory routing problem contributes to the realization of the potential savings in invento...

We present a real planning problem where cement is transported by a fleet of ships from several production factories to many consumption silos along the Norwegian coast. The planners are responsible for both the ship routing and the inventory management at all production and consumption facilities. There exist several types of cement and the various types have to be allocated in separate cargo ...

In any supply chain, distribution planning of products is of great importance to managers. With effective and flexible distribution planning, mangers can increase the efficiency of time, place, and delivery utility of whole supply chain. In this paper, inventory routing problem (IRP) is applied to distribution planning of perishable products in a supply chain. The studied supply chain is compos...

This paper considers a multi-period, multi-product inventory-routing problem in a two-level supply chain consisting of a distributor and a set of customers. This problem is modeled with the aim of minimizing bi-objectives, namely the total system cost (including startup, distribution and maintenance costs) and risk-based transportation. Products are delivered to customers by some heterogeneous ...

This study introduces a green location, routing and inventory problem with customer satisfaction, backup distribution centers and risk of routes in the form of a non-linear mixed integer programming model. In this regard, time window is considered to increase the customer satisfaction of the model and transportation risks is taken into account for the reliability of the system. In addition, dif...

We address the combined problem of allocating a scarce resource among several locations, and planning deliveries using a fleet of vehicles. Demands are random, and holding and shortage costs must be considered in the decision along with transportation costs. We show how to extend some of the available methods for the deterministic vehicle routing problem to this case. Computational results usin...