Science and Technology Production
Article
Authorship
Date
2018
Publishing House and Editing Place
Pergamon-Elsevier Science Ltd
Magazine
COMPUTERS AND CHEMICAL ENGINEERING,
vol. 119
(pp. 55-69)
Pergamon-Elsevier Science Ltd
Summary
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SIGEVA
Vendor-managed-inventory is a successful business practices based on the cooperation between a supplier and its customers in which demand and inventory information from the customers are shared with the supplier. This practice is gaining popularity in the chemical industry and relies on the inventory-routing-problem, which integrates inventory management, vehicle routing, and delivery scheduling decisions. This one is a difficult combinatorial optimization problem both theoretically and practic...
Vendor-managed-inventory is a successful business practices based on the cooperation between a supplier and its customers in which demand and inventory information from the customers are shared with the supplier. This practice is gaining popularity in the chemical industry and relies on the inventory-routing-problem, which integrates inventory management, vehicle routing, and delivery scheduling decisions. This one is a difficult combinatorial optimization problem both theoretically and practically. However, because of the large expenses involved in distribution and inventorying of chemical products, it is attractive to make use of optimization tools for exploiting as many degrees of freedom as possible with the goal of minimizing both distribution and inventorying costs. Consequently, we propose a nested column generation algorithm for solving an inventorying and distribution problem that models the delivery of several chemicals fluids. The approach is building on a column generation & incomplete branch-and-price algorithm in which for each delivery route, the delivery patterns of fluids are also determined by column generation. We detail the implementation and provide computational results for realistic test instances.
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Key Words
MULTI-COMMODITYINVENTORY-ROUTING-PROBLEMINCOMPLETE BRANCH-AND-PRICENESTED COLUMN GENERATIONMULTI-COMPARTMENT VEHICLES
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