IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v57y2009i2p314-326.html
   My bibliography  Save this article

Indexability and Index Heuristics for a Simple Class of Inventory Routing Problems

Author

Listed:
  • T. W. Archibald

    (Management School, University of Edinburgh, Edinburgh, EH8 9JY, United Kingdom)

  • D. P. Black

    (Management School, Lancaster University, Lancaster, LA1 4YX, United Kingdom)

  • K. D. Glazebrook

    (Management School, Lancaster University, Lancaster, LA1 4YX, United Kingdom)

Abstract

We utilise and develop Whittle's restless bandit formulation to analyse a simple class of inventory routing problems with direct deliveries. These routing problems arise from the practice of vendor-managed inventory replenishment and concern the optimal replenishment of a collection of inventory holding locations controlled centrally by a decision maker who is able to monitor inventory levels throughout the network. We develop a notion of location indexability from a Lagrangian relaxation of the problem and show that (subject to mild conditions) the locations are indeed indexable. We thus have a collection of location indices in closed form, namely, real-valued functions of the inventory level (one for each location), which measure in a natural way (namely, as a fair charge for replenishment) each location's priority for inclusion in each day's deliveries. We discuss how to use such location indices to construct heuristics for replenishment and assess a greedy index heuristic in a numerical study where it performs strongly. A simpler approximate index analysis is available for the case in which the demand at each location is Poisson. This analysis permits a more explicit characterisation of the range of holding cost rates for which (approximate) location indexability is guaranteed.

Suggested Citation

  • T. W. Archibald & D. P. Black & K. D. Glazebrook, 2009. "Indexability and Index Heuristics for a Simple Class of Inventory Routing Problems," Operations Research, INFORMS, vol. 57(2), pages 314-326, April.
  • Handle: RePEc:inm:oropre:v:57:y:2009:i:2:p:314-326
    DOI: 10.1287/opre.1070.0505
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.1070.0505
    Download Restriction: no

    File URL: https://libkey.io/10.1287/opre.1070.0505?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Glazebrook, K. D. & Mitchell, H. M. & Ansell, P. S., 2005. "Index policies for the maintenance of a collection of machines by a set of repairmen," European Journal of Operational Research, Elsevier, vol. 165(1), pages 267-284, August.
    2. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2002. "The Stochastic Inventory Routing Problem with Direct Deliveries," Transportation Science, INFORMS, vol. 36(1), pages 94-118, February.
    3. Barnes-Schuster, Dawn & Bassok, Yehuda, 1997. "Direct shipping and the dynamic single-depot/multi-retailer inventory system," European Journal of Operational Research, Elsevier, vol. 101(3), pages 509-518, September.
    4. Christos H. Papadimitriou & John N. Tsitsiklis, 1999. "The Complexity of Optimal Queuing Network Control," Mathematics of Operations Research, INFORMS, vol. 24(2), pages 293-305, May.
    5. P. S. Ansell & K. D. Glazebrook & J. Niño-Mora & M. O'Keeffe, 2003. "Whittle's index policy for a multi-class queueing system with convex holding costs," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 57(1), pages 21-39, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ece Zeliha Demirci & Joachim Arts & Geert-Jan Van Houtum, 2022. "A restless bandit approach for capacitated condition based maintenance scheduling," DEM Discussion Paper Series 22-01, Department of Economics at the University of Luxembourg.
    2. Kyle Y. Lin & Michael P. Atkinson & Timothy H. Chung & Kevin D. Glazebrook, 2013. "A Graph Patrol Problem with Random Attack Times," Operations Research, INFORMS, vol. 61(3), pages 694-710, June.
    3. Li, Kunpeng & Chen, Bin & Sivakumar, Appa Iyer & Wu, Yong, 2014. "An inventory–routing problem with the objective of travel time minimization," European Journal of Operational Research, Elsevier, vol. 236(3), pages 936-945.
    4. Nicolas Gast & Bruno Gaujal & Kimang Khun, 2023. "Testing indexability and computing Whittle and Gittins index in subcubic time," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 97(3), pages 391-436, June.
    5. Dong Li & Li Ding & Stephen Connor, 2020. "When to Switch? Index Policies for Resource Scheduling in Emergency Response," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 241-262, February.
    6. Vivek S. Borkar & Sarath Pattathil, 2022. "Whittle indexability in egalitarian processor sharing systems," Annals of Operations Research, Springer, vol. 317(2), pages 417-437, October.
    7. Rob Shone & Vincent A. Knight & Paul R. Harper, 2020. "A conservative index heuristic for routing problems with multiple heterogeneous service facilities," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 92(3), pages 511-543, December.
    8. Turgay Ayer & Can Zhang & Anthony Bonifonte & Anne C. Spaulding & Jagpreet Chhatwal, 2019. "Prioritizing Hepatitis C Treatment in U.S. Prisons," Operations Research, INFORMS, vol. 67(3), pages 853-873, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Urtzi Ayesta & Manu K. Gupta & Ina Maria Verloop, 2021. "On the computation of Whittle’s index for Markovian restless bandits," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 93(1), pages 179-208, February.
    2. Ece Zeliha Demirci & Joachim Arts & Geert-Jan Van Houtum, 2022. "A restless bandit approach for capacitated condition based maintenance scheduling," DEM Discussion Paper Series 22-01, Department of Economics at the University of Luxembourg.
    3. José Niño-Mora, 2006. "Restless Bandit Marginal Productivity Indices, Diminishing Returns, and Optimal Control of Make-to-Order/Make-to-Stock M/G/1 Queues," Mathematics of Operations Research, INFORMS, vol. 31(1), pages 50-84, February.
    4. José Niño-Mora, 2020. "A Verification Theorem for Threshold-Indexability of Real-State Discounted Restless Bandits," Mathematics of Operations Research, INFORMS, vol. 45(2), pages 465-496, May.
    5. Turgay Ayer & Can Zhang & Anthony Bonifonte & Anne C. Spaulding & Jagpreet Chhatwal, 2019. "Prioritizing Hepatitis C Treatment in U.S. Prisons," Operations Research, INFORMS, vol. 67(3), pages 853-873, May.
    6. Yves Crama & Mahmood Rezaei & Martin Savelsbergh & Tom Van Woensel, 2018. "Stochastic Inventory Routing for Perishable Products," Transportation Science, INFORMS, vol. 52(3), pages 526-546, June.
    7. Mohd Kamarul Irwan Abdul Rahim & El-Houssaine Aghezzaf & Veronique Limère & Birger Raa, 2016. "Analysing the effectiveness of vendor-managed inventory in a single-warehouse, multiple-retailer system," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(8), pages 1953-1965, June.
    8. Dong Li & Li Ding & Stephen Connor, 2020. "When to Switch? Index Policies for Resource Scheduling in Emergency Response," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 241-262, February.
    9. Philip Cho & Vivek Farias & John Kessler & Retsef Levi & Thomas Magnanti & Eric Zarybnisky, 2015. "Maintenance and flight scheduling of low observable aircraft," Naval Research Logistics (NRL), John Wiley & Sons, vol. 62(1), pages 60-80, February.
    10. S. Duran & U. Ayesta & I. M. Verloop, 2022. "On the Whittle index of Markov modulated restless bandits," Queueing Systems: Theory and Applications, Springer, vol. 102(3), pages 373-430, December.
    11. Jin-Hwa Song & Martin Savelsbergh, 2007. "Performance Measurement for Inventory Routing," Transportation Science, INFORMS, vol. 41(1), pages 44-54, February.
    12. K. D. Glazebrook & R. Minty, 2009. "A Generalized Gittins Index for a Class of Multiarmed Bandits with General Resource Requirements," Mathematics of Operations Research, INFORMS, vol. 34(1), pages 26-44, February.
    13. José Niño-Mora, 2023. "Markovian Restless Bandits and Index Policies: A Review," Mathematics, MDPI, vol. 11(7), pages 1-27, March.
    14. Anton J. Kleywegt & Vijay S. Nori & Martin W. P. Savelsbergh, 2004. "Dynamic Programming Approximations for a Stochastic Inventory Routing Problem," Transportation Science, INFORMS, vol. 38(1), pages 42-70, February.
    15. K. D. Glazebrook & C. Kirkbride & J. Ouenniche, 2009. "Index Policies for the Admission Control and Routing of Impatient Customers to Heterogeneous Service Stations," Operations Research, INFORMS, vol. 57(4), pages 975-989, August.
    16. Michelle Opp & Kevin Glazebrook & Vidyadhar G. Kulkarni, 2005. "Outsourcing warranty repairs: Dynamic allocation," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(5), pages 381-398, August.
    17. Simon Emde & Shohre Zehtabian & Yann Disser, 2023. "Point-to-point and milk run delivery scheduling: models, complexity results, and algorithms based on Benders decomposition," Annals of Operations Research, Springer, vol. 322(1), pages 467-496, March.
    18. K.D. Glazebrook & C. Kirkbride, 2004. "Index policies for the routing of background jobs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(6), pages 856-872, September.
    19. Vishal Gaur & Marshall L. Fisher, 2004. "A Periodic Inventory Routing Problem at a Supermarket Chain," Operations Research, INFORMS, vol. 52(6), pages 813-822, December.
    20. Li, Shuqin & Jia, Shuai, 2019. "A Benders decomposition algorithm for the order fulfilment problem of an e-tailer with a self-owned logistics system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 463-480.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:57:y:2009:i:2:p:314-326. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.