Solving Multi-depot Inventory-routing Problems Based on Decomposition and Coordination Method

A model is established to incorporates working inventory,safety stock inventory and stochastic routing costs.Firstly,an effective algorithm is designed to find out the route expected cost by Monte-Carlo sampling.Secondly,poor convergence is solved by utilizing traditional decomposition and coordination method(DCM),the coordination values are designed by genetic algorithm(GA).Moreover,for dealing with the vehicle routing problem of stochastic demands for each subsystem,in order to improve the cross-entropy method's performance,an adaptive adjustment scheme is developed for the routes used to update Markov transition matrix in terms of the improvement level of quintiles.Finally,simulation results prove the validity of the proposed method.