Abstract
This paper addresses a production and distribution problem in a supply chain. The supply chain consists of a plant with no storage capacity that produces only one type of product. The manufactured products are then transported to a depot for storage. Customers demand is met by a homogeneous fleet of vehicles that begins and ends their trips at the depot. The objective of the study is to minimize the overall cost of production, inventory and transport throughout the supply chain. A Branch-and-Cut and a hybrid Two Phases Decomposition Heuristic using a Mixed Integer Programming and a Genetic Algorithm have been developed to solve the problem.
Highlights
In a supply chain, several activities are involved in meeting consumer needs
He must ensure that there is no stock shortage at the customers. This practice contrasts with the Retailer Managed Inventory (RMI) or Costumer Managed Inventory (CMI) practice in which customers decide the time and amount of replenishment, regardless of decisions made by other customers and the supplier
In a comparative study to analyse the importance of coordination of production and distribution [5], it has been shown that savings of 3% to 20% on the total cost of production and distribution can be achieved by considering the supply chain as an integrated and coordinated system
Summary
Several activities are involved in meeting consumer needs. Producing, storing and distributing products are the main activities of the actors or companies that make up a supply chain. It does not consider inventory and production decisions It is mainly interested in the organization of the routes of each vehicle, knowing that the schedule for each customer's visit is known in advance. The Inventory Routing Problem (IRP) is a supply chain planning problem based on the integration and coordination of inventory decisions and the determination of the best vehicle trips over a given planning horizon. The IRP is a generalization of the VRP which allows in addition, answer questions such as "When to deliver or collect products?" and "how much to collect or deliver for a given period of the planning horizon?" This is the place to implement a good replenishment policy and management practice such as the Vendor Managed Inventory (VMI).
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