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Inventory routing with pickups and deliveries

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  • Archetti, Claudia
  • Christiansen, Marielle
  • Grazia Speranza, M.

Abstract

This paper introduces a class of problems which integrate pickup and delivery vehicle routing problems (PDPs) and inventory management, and we call them inventory routing problems with pickups and deliveries (IRP-PD). We consider a specific problem of this class, where a commodity is made available at several origins and demanded by several destinations. Time is discretized and transportation is performed by a single vehicle. A mathematical programming model is proposed together with several classes of valid inequalities. The models are solved with a branch-and-cut method. Computational tests are performed to show the effectiveness of the valid inequalities on instances generated from benchmark instances for the inventory routing problem. Results show that the branch-and-cut algorithm is able to solve to optimality 345 over 400 instances with up to 50 customers over 3 periods of time, and 142 over 240 instances with up to 30 customers and 6 periods. From a management perspective, results show that the average cost of a non integrated policy is more than 35% higher than the cost of an integrated policy.

Suggested Citation

  • Archetti, Claudia & Christiansen, Marielle & Grazia Speranza, M., 2018. "Inventory routing with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 268(1), pages 314-324.
    • Handle: RePEc:eee:ejores:v:268:y:2018:i:1:p:314-324
    DOI: 10.1016/j.ejor.2018.01.010
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    2. Fatima Ezzahra Achamrah & Fouad Riane & Evren Sahin & Sabine Limbourg, 2022. "An Artificial-Immune-System-Based Algorithm Enhanced with Deep Reinforcement Learning for Solving Returnable Transport Item Problems," Sustainability, MDPI, vol. 14(10), pages 1-29, May.
    3. A. Mor & M. G. Speranza, 2022. "Vehicle routing problems over time: a survey," Annals of Operations Research, Springer, vol. 314(1), pages 255-275, July.
    4. Soysal, Mehmet & Koç, Çağrı & Çimen, Mustafa & İbiş, Merve, 2023. "Managing returnable transport items in a vendor managed inventory system," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    5. Neves-Moreira, Fábio & Almada-Lobo, Bernardo & Guimarães, Luís & Amorim, Pedro, 2022. "The multi-product inventory-routing problem with pickups and deliveries: Mitigating fluctuating demand via rolling horizon heuristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    6. Archetti, Claudia & Speranza, M. Grazia & Boccia, Maurizio & Sforza, Antonio & Sterle, Claudio, 2020. "A branch-and-cut algorithm for the inventory routing problem with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 282(3), pages 886-895.
    7. Skålnes, Jørgen & Andersson, Henrik & Desaulniers, Guy & Stålhane, Magnus, 2022. "An improved formulation for the inventory routing problem with time-varying demands," European Journal of Operational Research, Elsevier, vol. 302(3), pages 1189-1201.
    8. Agra, Agostinho & Christiansen, Marielle & Wolsey, Laurence, 2022. "Improved models for a single vehicle continuous-time inventory routing problem with pickups and deliveries," European Journal of Operational Research, Elsevier, vol. 297(1), pages 164-179.
    9. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2020. "A green delivery-pickup problem for home hemodialysis machines; sharing economy in distributing scarce resources," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).

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