A new model for multi-period bi-objective inventory routing problem with stochastic demand, inventory holding, shortage and customer satisfaction

Abstract

This paper presents a new multi-period, bi-objective inventory routing problem model with stochastic demand in two echelon network supply chain including some suppliers with several vehicles to satisfy customers' demands. Reducing the number of vehicles is also considered when each vehicle belongs to one route. The difference between this paper and the others is that the shortages and inventory holdings are kept at the customers' parts not in distribution centres. Customers' review of records costs and customer satisfaction and its relationship with shortage and inventory holding are the objective functions. The customer satisfaction increased by decreasing inventory holdings and shortage amount. The goal is to determine the delivery quantities to customers taking account of shortage and inventory holding amount per period. The objective of this paper is to minimise transportation routing costs, customers' review of records costs, inventory holding costs and shortage costs, and maximise customer satisfaction. The presented model is analysed by e-constraint method and run in GAMS software.