EURO 2024 Copenhagen
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4174. Inventory Routing Problem: A New Integrated Clustering and Routing Algorithm

Invited abstract in session MB-60: Vehicle routing II, stream Transportation.

Monday, 10:30-12:00
Room: S09 (building: 101)

Authors (first author is the speaker)

1. Okan Ozener
Industrial Engineering, Ozyegin University
2. Ali Ekici
Industrial Engineering, Ozyegin University

Abstract

Inventory Routing Problem (IRP) arises from vendor-managed
inventory business settings where the supplier is responsible for
replenishing the inventories of its customers over a planning
horizon. In the IRP, the supplier makes the routing and inventory
decisions together to improve the overall performance of the
system. More specifically, the supplier decides (i) when to
replenish each customer, (ii) how much to deliver to each
customer, and (iii) how to route delivery vehicles between the
depot and the customers. In our setting, the supplier's goal is to
minimize total transportation cost over a planning horizon while
avoiding stock-outs at the customer locations. We assume that the
supplier has a fleet of homogeneous capacitated delivery vehicles
and abundant availability of the product to be delivered to the
customers. Each customer has a constant demand/consumption rate
and limited storage capacity to keep inventory. In order to
address this problem, we propose a novel integrated clustering and
routing algorithm. In the clustering phase, we partition the
customer set into clusters such that a single vehicle serves each
cluster. In the routing phase, we develop the delivery schedule
for each cluster. The novelty of the proposed approach is that it
takes the three main decisions (when to deliver, how much to
deliver and how to route) into account when partitioning the
customer set into clusters.

Keywords

Status: accepted

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