An arc flow formulation to the multitrip production, inventory, distribution, and routing problem with time windows

Abstract

AbstractThe multitrip production, inventory, distribution, and routing problem with time windows (MPIDRPTW) is an integrated problem that combines a production and distribution problem, a multitrip vehicle routing problem, and an inventory routing problem. In the MPIDRPTW, a set of customers, which have a time‐varying demand during a finite planning horizon, is served by a single production facility. The distribution is accomplished by a fleet of homogeneous vehicles that deliver the customer orders within their specific time windows. Production management has to be done according to the inventories at the facility and at the customers. An exact arc flow model based on a graph is proposed to solve the MPIDRPTW, where the nodes represent instants of time. The main goal of the problem is to minimize the costs associated with the entire system. The proposed approach was implemented and a set of experimental tests were conducted based on a set of adapted instances from the literature.