Model and algorithm for inventory/routing decision in a three-echelon logistics systemZhao, Qiu-Hong, Shuang Chen and Zang, Cun-Xun European Journal of Operational Research, 2008, vol. 191, issue 3, pages 623-635 Abstract: This paper addresses an integrated inventory and routing problem in a three-echelon logistics system, which consists of a supplier, a central warehouse and a group of retailers. The inventory decision of each member and the routing decision among members of the system are made simultaneously, with the objective of minimizing the overall average cost of the system. A strategy named fixed partition and power-of-two (FP-POT) is proposed for the considered problem and a variable large neighborhood search (VLNS) algorithm, which is a special case of variable neighborhood search (VNS) algorithm, is developed. The efficiency of the strategy as well as the algorithm is illustrated by comparing computational results with a lower bound. The advantage of the proposed VLNS algorithm is further shown by getting better results for the problems in a two-echelon logistics system, which have been solved by a Tabu Search algorithm recently. Downloads: (external link) Related works: Access Statistics for this article European Journal of Operational Research is edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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