Inventory-Routing Model, for a Multi-Period Problem with Stochastic and Deterministic Demand
The need for integration in the supply chain management leads us to consider the coordination of two logistic planning functions: transportation and inventory. The coordination of these activities can be an extremely important source of competitive advantage in the supply chain management. The battle for cost reduction can pass through the equilibrium of transportation versus inventory managing costs. In this work, we study the specific case of an inventory-routing problem for a week planning period with different types of demand. A heuristic methodology, based on the Iterated Local Search, is proposed to solve the Multi-Period Inventory Routing Problem with stochastic and deterministic demand.
Inventory-Routing, iterated local search, logistics
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