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Route and fleet design for cyclic inventory routing

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  • Raa, Birger
  • Dullaert, Wout

Abstract

This paper presents a novel solution approach for planning cyclic distribution from a single depot to multiple customers with constant, deterministic demand rates. The objective is to minimize the total cost rate consisting of fleet costs, distribution costs from the depot to the customers and inventory holding costs at the customers. A solution is built in two phases: designing routes and composing the fleet. When designing vehicle routes in the first phase, the route cycle times are chosen such that the distribution and inventory holding costs are minimized. When assigning routes to vehicles in the second phase, the routes remain unchanged, but their cycle times can be adjusted to minimize the required number of vehicles. The building blocks of this two-phase solution approach are embedded in a metaheuristic framework. Computational experiments show that the resulting solution framework outperforms existing solution approaches.

Suggested Citation

  • Raa, Birger & Dullaert, Wout, 2017. "Route and fleet design for cyclic inventory routing," European Journal of Operational Research, Elsevier, vol. 256(2), pages 404-411.
  • Handle: RePEc:eee:ejores:v:256:y:2017:i:2:p:404-411
    DOI: 10.1016/j.ejor.2016.06.009
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    Cited by:

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    2. Ali Diabat & Claudia Archetti & Waleed Najy, 2021. "The Fixed-Partition Policy Inventory Routing Problem," Transportation Science, INFORMS, vol. 55(2), pages 353-370, March.
    3. Raa, Birger & Aouam, Tarik, 2021. "Multi-vehicle stochastic cyclic inventory routing with guaranteed replenishments," International Journal of Production Economics, Elsevier, vol. 234(C).
    4. Saijun Shao & Kin Keung Lai & Biyun Ge, 2023. "A multi-period inventory routing problem with procurement decisions: a case in China," Annals of Operations Research, Springer, vol. 324(1), pages 1527-1555, May.
    5. Emre Çankaya & Ali Ekici & Okan Örsan Özener, 2019. "Humanitarian relief supplies distribution: an application of inventory routing problem," Annals of Operations Research, Springer, vol. 283(1), pages 119-141, December.
    6. Emde, Simon & Tahirov, Nail & Gendreau, Michel & Glock, Christoph H., 2021. "Routing automated lane-guided transport vehicles in a warehouse handling returns," European Journal of Operational Research, Elsevier, vol. 292(3), pages 1085-1098.
    7. Ali Ekici & Okan Örsan Özener, 2020. "Inventory routing for the last mile delivery of humanitarian relief supplies," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(3), pages 621-660, September.
    8. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    9. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    10. Raa, Birger & Aouam, Tarik, 2023. "A shortfall modelling-based solution approach for stochastic cyclic inventory routing," European Journal of Operational Research, Elsevier, vol. 305(2), pages 674-684.

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