Collaborative Model and Algorithms for Supporting Real-Time Distribution Logistics Systems

Abstract We study a complex optimization problem that arises due to an emerging trend in distribution logistics. The problem involves the integration of an inventory management problem and the vehicle routing problem with time windows, both of which are known to be NP-hard. We describe a collaborative approach to solve this problem in real-time. The novelty of our approach lies in the tight algorithmic integration between two sub-problems, and suggests an elegant scheme to deal with other integrated optimization problems of the same nature. For first sub-problem, we will present two algorithms: a complete mathematical model integrating integer programming with constraint programming, and an incomplete algorithm based on tabu search.