Delivery cost approximations for inventory routing problems in a rolling horizon framework

Delivery cost approximations for inventory routing problems in a rolling horizon framework

0.00 Avg rating0 Votes
Article ID: iaor200473
Country: United States
Volume: 36
Issue: 3
Start Page Number: 292
End Page Number: 300
Publication Date: Aug 2002
Journal: Trans Science
Authors: , , ,
Keywords: vehicle routing & scheduling
Abstract:

The inventory routing problem considered in this paper is concerned with the repeated distribution of a commodity, such as heating oil, over a long period of time to a large number of customers. The problem involves a central depot as well as various satellite facilities which the drivers can visit during their shift to refill their vehicles. The customers maintain a local inventory of the commodity. Their consumption varies daily and cannot be predicted deterministically. In case of a stockout, a direct delivery is made and a penalty cost is incurred. In this paper, we present incremental cost approximations to be used in a rolling horizon framework for the problem of minimizing the total expected annual delivery costs.

Reviews

Required fields are marked *. Your email address will not be published.