A partition approach to the inventory/routing problem

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

  • Qiu-Hong Zhao
  • Shou-Yang Wang
  • K. K. Lai

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)786-802
Journal / PublicationEuropean Journal of Operational Research
Volume177
Issue number2
Publication statusPublished - 1 Mar 2006

Abstract

In this study we focus on the integration of inventory control and vehicle routing schedules for a distribution system in which the warehouse is responsible for the replenishment of a single item to the retailers with demands occurring at a specific constant (but retailer-dependent) rate, combining deliveries into efficient routes. This research proposes a fixed partition policy for this type of problem, in which the replenishment interval of each of the retailers' partition region as well as the warehouse is accorded the power of two (POT) principle. A lower bound of the long-run average cost of any feasible strategy for the considered distribution system is drawn. And a tabu search algorithm is designed to find the retailers' optimal partition regions under the fixed partition policy proposed. Computational results reveal the effectiveness of the policy as well as of the algorithm. © 2006 Elsevier B.V. All rights reserved.

Research Area(s)

  • Distribution system, Inventory control and vehicle routing schedules, Partition approach, Tabu search algorithm

Citation Format(s)

A partition approach to the inventory/routing problem. / Zhao, Qiu-Hong; Wang, Shou-Yang; Lai, K. K.

In: European Journal of Operational Research, Vol. 177, No. 2, 01.03.2006, p. 786-802.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review