Integrated inventory-transportation model by synchronizing delivery and production cycles

This paper develops an integrated single-vendor multi-buyer inventory-transportation synchronized supply chain model. In this paper, the decisions of truck assignment and routing are also considered and as a result, a series of vehicle routing problems (VRP) are required to be solved. Due to the highly complicated objective function and the NP-hard VRP problems, the problem cannot be solved analytically. Hence, meta-heuristics are proposed. By means of the numerical examples and a case study, the meta-heuristics developed are shown to be very effective in solving such comprehensive supply chain models, and the results so obtained are promising.

[1]  F. J. Arcelus,et al.  Inventory policies with freight and incremental quantity discounts , 1991 .

[2]  C. Chan,et al.  A co-ordination model combining incentive scheme and co-ordination policy for a single-vendor–multi-buyer supply chain , 2012 .

[3]  Jonathan Burton,et al.  Coordinated vs. independent inventory replenishment policies for a vendor and multiple buyers , 1994 .

[4]  Lawrence Bodin,et al.  Approximate Traveling Salesman Algorithms , 1980, Oper. Res..

[5]  Donald C. Aucamp Nonlinear freight costs in the EOQ problem , 1982 .

[6]  David Pisinger,et al.  An Adaptive Large Neighborhood Search Heuristic for the Pickup and Delivery Problem with Time Windows , 2006, Transp. Sci..

[7]  Giovanni Righini,et al.  Heuristic algorithms for the vehicle routing problem with simultaneous pick-up and delivery , 2007, Comput. Oper. Res..

[8]  José A. Ventura,et al.  Optimal inventory policies with two modes of freight transportation , 2008, Eur. J. Oper. Res..

[9]  Suresh Goyal,et al.  A review of the joint replenishment problem literature: 1989-2005 , 2008, Eur. J. Oper. Res..

[10]  André Langevin,et al.  The multi-district team orienteering problem , 2014, Comput. Oper. Res..

[11]  Michael Godfrey,et al.  Incorporating transportation costs into inventory replenishment decisions , 2002 .

[12]  Michel Gendreau,et al.  An Adaptive Large Neighborhood Search for a Vehicle Routing Problem with Multiple Trips , 2010 .

[13]  Serpil Sayin,et al.  Pricing and lot-sizing decisions in a two-echelon system with transportation costs , 2009, OR Spectr..

[14]  Gilbert Laporte,et al.  Classical and modern heuristics for the vehicle routing problem , 2000 .

[15]  Beatrice M. Ombuki-Berman,et al.  Using Genetic Algorithms for Multi-depot Vehicle Routing , 2009, Bio-inspired Algorithms for the Vehicle Routing Problem.

[16]  Taebok Kim,et al.  A consolidated delivery policy of multiple suppliers for a single buyer , 2009 .

[17]  Vijay Aggarwal,et al.  Incorporating transport cost in the lot size and pricing decisions with downward sloping demand , 2005 .

[18]  Alain Hertz,et al.  A Tabu Search Algorithm for the Split Delivery Vehicle Routing Problem , 2003, Transp. Sci..

[19]  Roberto Musmanno,et al.  An Adaptive Large Neighbourhood Search Heuristic for the Capacitated Arc-Routing Problem with Stochastic Demands , 2010, Transp. Sci..

[20]  Kjetil Fagerholt,et al.  A large neighbourhood search heuristic for ship routing and scheduling with split loads , 2010, Comput. Oper. Res..

[21]  Bernard K.-S. Cheung,et al.  Solving the Multi-Buyer Joint Replenishment Problem with a Modified Genetic Algorithm , 1999 .

[22]  Brian G. Kingsman,et al.  Coordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles , 2007 .

[23]  Marius M. Solomon,et al.  Algorithms for the Vehicle Routing and Scheduling Problems with Time Window Constraints , 1987, Oper. Res..

[24]  Steven A. Lippman Economic Order Quantities and Multiple Set-Up Costs , 1971 .

[25]  Richard W. Eglese,et al.  Combinatorial optimization and Green Logistics , 2010, Ann. Oper. Res..

[26]  Joseph R. Carter,et al.  Transportation costs and inventory management: Why transportation costs matter , 1996 .

[27]  José A. Ventura,et al.  Two-stage inventory models with a bi-modal transportation cost , 2010, Comput. Oper. Res..

[28]  Richard J. Tersine,et al.  Economic Inventory/Transport Lot, Sizing with Quantity and Freight Rate Discounts , 1991 .

[29]  M. Darwish,et al.  The joint economic lot sizing problem: Review and extensions , 2008, Eur. J. Oper. Res..

[30]  R J Tersine,et al.  AN ECONOMIC INVENTORY TRANSPORT MODEL WITH FREIGHT RATE DISCOUNTS , 1989 .

[31]  Glaydston Mattos Ribeiro,et al.  An adaptive large neighborhood search heuristic for the cumulative capacitated vehicle routing problem , 2012, Comput. Oper. Res..

[32]  David Pisinger,et al.  A unified heuristic for a large class of Vehicle Routing Problems with Backhauls , 2006, Eur. J. Oper. Res..

[33]  Gilbert Laporte,et al.  The multi-depot vehicle routing problem with inter-depot routes , 2007, Eur. J. Oper. Res..

[34]  Richard J. Tersine,et al.  Optimal lot sizes for unit and shipping discount situations , 1994 .

[35]  Saïd Salhi,et al.  Location-routing: Issues, models and methods , 2007, Eur. J. Oper. Res..

[36]  Pierre Baptiste,et al.  Integration of inventory and transportation decisions in decentralised supply chains , 2009 .

[37]  Saïd Salhi,et al.  Heuristic algorithms for single and multiple depot vehicle routing problems with pickups and deliveries , 2005, Eur. J. Oper. Res..

[38]  Sarada Prasad Sarmah,et al.  Buyer vendor coordination models in supply chain management , 2006, Eur. J. Oper. Res..

[39]  Chi Kin Chan,et al.  A delayed payment method in co-ordinating a single-vendor multi-buyer supply chain , 2010 .