This paper proposes a practical solution approach for the challenging optimization problem of minimizing overall costs in an integrated distribution and inventory control system. Constant customer demand rates are assumed and therefore a long-term, cyclic planning approach is adopted. The concept of distribution patterns, consisting of vehicles performing multiple tours with possibly different frequencies, is used to extend the traditional concept of a single tour per vehicle. A heuristic is proposed that is capable of solving a cyclical distribution problem involving real-life features, such as customer capacity restrictions, loading and unloading extra times and prespecified minimum times between consecutive deliveries.
Affiliations
Ghent UniversityDepartment of Industrial Management
Ghent UniversityDepartment of Industrial Management
Raa, B., & Aghezzaf, E.-H. (2008). Designing distribution patterns for long-term inventory routing with constant demand rates. International Journal of Production Economics, 112(1), 255-263. https://doi.org/10.1016/j.ijpe.2006.08.023 (Original work published 2008)