Comparing sequential and integrated approaches for the production routing problem

Nabil Absi, Claudia Archetti, Stéphane Dauzère-Pérès, Dominique Feillet and M. Grazia Speranza

European Journal of Operational Research, 2018, vol. 269, issue 2, 633-646

Abstract: We consider the Production Routing Problem where production planning, inventory management and distribution planning decisions must be taken. We compare two sequential approaches, one in which production decisions are optimized first and one in which distribution decisions are optimized first, with an integrated approach where all decisions are simultaneously optimized. Some properties of the solutions obtained with the different approaches are shown. Computational experiments are performed on instances of different size which are generated using two critical parameters. The numerical results illustrate the properties and show that the benefits of the integrated approach over the two sequential ones depend on the trade-off between production and distribution costs and on the trade-off between setup and inventory costs in production.

Keywords: Production routing; Lot sizing; Inventory routing; Sequential optimization; Global optimization (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:269:y:2018:i:2:p:633-646

DOI: 10.1016/j.ejor.2018.01.052

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