A maritime inventory routing problem: Practical approach

Despite of the practicality of the motivation of the inventory routing problem (IRP), there are few successful implementation stories of IRP based decision support systems which utilize optimization algorithms. Besides the fact that the IRP is an extremely challenging optimization problem, simplifications and assumptions made in the definition of typical IRP in the literature make it even more difficult to take advantage of the developed technologies for IRP in practice. This paper introduces a flexible modeling framework for IRP, which can accommodate various practical features. A simple algorithmic framework of an optimization based heuristic method is also proposed. A case study on a practical maritime inventory routing problem (MIRP) shows that the proposed modeling and algorithmic framework is flexible and effective enough to be a choice of model and solution method for practical inventory routing problems.