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Inventory routing problems in a context of vendor-managed inventory system with consignment stock and transshipment

Author

Listed:
  • Zied Jemai

    (EM - EMLyon Business School)

  • Yacine Rekik
  • Rim Kalai

Abstract

The inventory routing problem involves the integration and the coordination of two components of the logistics value chain: the inventory management and the vehicle routing decisions. In fact, the aim is to jointly decide on the distribution tour, from a distribution centre to a set of locations, and on the inventory policy for each location. Although many research investigations show great interest in policies such as transshipment or dynamic routings on the distribution system performances, these approaches are often criticised in practice as being too restrictive. In this article, we consider the inventory routing framework in a supplier integration context, i.e. a vendor-managed inventory with a consignment stock policy. Under such framework, we show that the transshipment brings more benefits than the classical context. In particular, we consider the case of static routings and we numerically show that transshipment permits to better optimise the distribution tours and to improve the global performance of the supply network.

Suggested Citation

  • Zied Jemai & Yacine Rekik & Rim Kalai, 2013. "Inventory routing problems in a context of vendor-managed inventory system with consignment stock and transshipment," Post-Print hal-02312969, HAL.
    • Handle: RePEc:hal:journl:hal-02312969
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    Cited by:

    1. Tarhini, Hussein & Karam, Mario & Jaber, Mohamad Y., 2020. "An integrated single-vendor multi-buyer production inventory model with transshipments between buyers," International Journal of Production Economics, Elsevier, vol. 225(C).
    2. Lixia Li & Yu Yang & Gaoyuan Qin, 2019. "Optimization of Integrated Inventory Routing Problem for Cold Chain Logistics Considering Carbon Footprint and Carbon Regulations," Sustainability, MDPI, vol. 11(17), pages 1-22, August.
    3. He, Yong & Zhang, Peng & Yao, Yuliang, 2014. "Unidirectional transshipment policies in a dual-channel supply chain," Economic Modelling, Elsevier, vol. 40(C), pages 259-268.
    4. Soysal, Mehmet & Bloemhof-Ruwaard, Jacqueline M. & Haijema, Rene & van der Vorst, Jack G.A.J., 2015. "Modeling an Inventory Routing Problem for perishable products with environmental considerations and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 164(C), pages 118-133.

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