The integrated model for solving the single-period deterministic inventory routing problem
Mohd Kamarul Irwan Abdul Rahim, Rahimi Abidin, Rosman Iteng, Hendrik Lamsali
Abstract
Mohd Kamarul Irwan Abdul Rahim, Rahimi Abidin, Rosman Iteng, Hendrik Lamsali
Abstract
This paper discusses the problem of efficiently managing inventory and routing problems in a two-level supply chain system. Vendor Managed Inventory (VMI) policy is an integrating decisions between a supplier and his customers. We assumed that the demand at each customer is stationary and the warehouse is implementing a VMI. The objective of this paper is to minimize the inventory and the transportation costs of the customers for a two-level supply chain. The problem is to determine the delivery quantities, delivery times and routes to the customers for the single-period deterministic inventory routing problem (SP-DIRP) system. As a result, a linear mixed-integer program is developed for the solutions of the SP-DIRP problem.
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This paper discusses the problem of efficiently managing inventory and routing problems in a two-level supply chain system. Vendor Managed Inventory (VMI) policy is an integrating decisions between a supplier and his customers. We assumed that the demand at each customer is stationary and the warehouse is implementing a VMI. The objective of this paper is to minimize the inventory and the transportation costs of the customers for a two-level supply chain. The problem is to determine the delivery quantities, delivery times and routes to the customers for the single-period deterministic inventory routing problem (SP-DIRP) system. As a result, a linear mixed-integer program is developed for the solutions of the SP-DIRP problem.
Key concepts: Supply chain, Vendor, Vendor-managed inventory, Operations research, Routing (electronic design automation), Inventory theory, Computer science, Supply chain management