Inventory routing with pickups and deliveries

Claudia Archetti, Marielle Christiansen and M. Grazia Speranza

European Journal of Operational Research, 2018, vol. 268, issue 1, 314-324

Abstract: This paper introduces a class of problems which integrate pickup and delivery vehicle routing problems (PDPs) and inventory management, and we call them inventory routing problems with pickups and deliveries (IRP-PD). We consider a specific problem of this class, where a commodity is made available at several origins and demanded by several destinations. Time is discretized and transportation is performed by a single vehicle. A mathematical programming model is proposed together with several classes of valid inequalities. The models are solved with a branch-and-cut method. Computational tests are performed to show the effectiveness of the valid inequalities on instances generated from benchmark instances for the inventory routing problem. Results show that the branch-and-cut algorithm is able to solve to optimality 345 over 400 instances with up to 50 customers over 3 periods of time, and 142 over 240 instances with up to 30 customers and 6 periods. From a management perspective, results show that the average cost of a non integrated policy is more than 35% higher than the cost of an integrated policy.

Keywords: Routing; Pickup and delivery problems; Inventory routing; Valid inequalities (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:268:y:2018:i:1:p:314-324

DOI: 10.1016/j.ejor.2018.01.010

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