The Online Distribution System of Inventory-Routing Problem with Simultaneous Deliveries and Returns Concerning CO 2 Emission Cost

Gia-Shie Liu and Kuo-Ping Lin
Additional contact information
Gia-Shie Liu: Department of Information Management, Lunghwa University of Science and Technology, Taoyuan 33306, Taiwan
Kuo-Ping Lin: Department of Industrial Engineering and Enterprise Information, Tunghai University, Taichung 40704, Taiwan

Mathematics, 2020, vol. 8, issue 6, 1-27

Abstract: This study attempts to consider CO 2 emission cost to propose an online distribution system of inventory-routing problem with simultaneous deliveries and returns (IRPSDRCO 2 ). The proposed IRPSDRCO 2 mathematical models will be developed to find the total inventory routing cost, the CO 2 emission cost, the optimal delivery routes, the economic order quantities, the optimal reordering points, the optimal service levels, the optimal common review interval, and the optimal maximum inventory levels for all retail stores delivered in these scheduled routes. The proposed IRPSDRCO 2 model further applies the savings method, the target insert heuristic method, the target exchange heuristic method, and the repeated target heuristic method to find the optimal solution and the related scheduled routing plan. The sensitivity analyses will be conducted for this proposed IRPSDRCO 2 model based on different parameters to provide very helpful decision-making information for a distribution system design. The performance of the proposed repeated target heuristic method is demonstrated to be better than most of four other combination methods regarding both the inventory routing cost and CPU running time. Consequently, it should be very helpful for logistics firms to design their distribution system by following the structure and the detailed procedure flow of the online distribution system developed by this study.

Keywords: inventory-routing problem with simultaneous deliveries and returns; CO 2 emission cost; target insert heuristic method; target exchange heuristic method; repeated target heuristic method; online distribution system (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7390/8/6/1002/pdf (application/pdf)
https://www.mdpi.com/2227-7390/8/6/1002/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:8:y:2020:i:6:p:1002-:d:373402

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().