A Two-Phase Iterative Heuristic Approach for the Production Routing Problem

N. Absi (), C. Archetti (), S. Dauzère-Pérès () and D. Feillet ()
Additional contact information
N. Absi: Department of Manufacturing Sciences and Logistics, Ecole des Mines de Saint-Etienne, F-13541 Gardanne, France
C. Archetti: Department of Economics and Management, University of Brescia, Brescia I-25122, Italy
S. Dauzère-Pérès: Department of Manufacturing Sciences and Logistics, Ecole des Mines de Saint-Etienne, F-13541 Gardanne, France
D. Feillet: Department of Manufacturing Sciences and Logistics, Ecole des Mines de Saint-Etienne, F-13541 Gardanne, France

Transportation Science, 2015, vol. 49, issue 4, 784-795

Abstract: This paper investigates the integrated optimization of production, distribution, and inventory decisions related to supplying multiple retailers from a central production facility. A single-item capacitated lot-sizing problem is defined for optimizing production decisions and inventory management. The optimization of daily distribution is modeled as a traveling salesman problem or a vehicle routing problem depending on the number of vehicles. A two-phase iterative method, from which several heuristics are derived, is proposed that iteratively focuses on lot-sizing and distribution decisions. Computational results show that our best heuristic outperforms existing methods.

Keywords: lot sizing; production; distribution; routing; heuristics (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:49:y:2015:i:4:p:784-795

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