Abstract
This paper addresses an inventory routing problem in vendor managed inventory systems with explicit consideration of buffer stock levels at warehouses. The problem involves a manufacturer delivering a product to a set of warehouses with available fleet capacity with the objective of minimising transportation and inventory costs. We have developed an integer linear programme (ILP) and proposed a hybrid heuristic for the problem. In the proposed heuristic, inventory is allocated using an ILP, vehicles are allotted to customers on the basis of proximity and routes for vehicles are determined using simulated annealing. The proposed heuristic is validated with different datasets and found to be performing well.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
