Abstract
In vendor-managed inventory replenishment, the vendor decides when to make deliveries to customers, how much to deliver, and how to combine shipments using the available vehicles. This gives rise to the inventory-routing problem in which the goal is to coordinate inventory replenishment and transportation to minimize costs. The problem tackled in this paper is the stochastic inventory-routing problem, where stochastic demands are specified through general discrete distributions. The problem is formulated as a discounted infinite-horizon Markov decision problem. Heuristics based on finite scenario trees are developed. Computational results confirm the efficiency of these heuristics.
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.
