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Business Research

, Volume 6, Issue 2, pp 173–194 | Cite as

An Integrated Inventory-Transportation System with Periodic Pick-Ups and Leveled Replenishment

  • Thomas VollingEmail author
  • Martin Grunewald
  • Thomas S. Spengler
Open Access
Article

Abstract

In this paper we develop a combined inventory-transportation system. The general idea is to integrate a simple replenishment policy with a routing component to derive operationally consistent standard routes as a basis for milk run design. The most interesting feature of the approach is that we combine stochastic vehicle routing with a replenishment policy which makes use of inventory to level the variability propagated into transportation operations. To evaluate the approach, we compare its performance with stochastic vehicle routing as well as sequential vehicle routing and replenishment planning. With respect to these approaches, substantial gains are achieved.

JEL-classification

C61 M11 

Keywords

inbound logistics milk run design inventory routing 

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© The Author(s) 2013

This article is published under license to BioMed Central Ltd. Open AccessThis article is distributed under the terms of the Creative Commons Attribution License which permits any use, distribution, and reproduction in any medium, provided the original author(s) and the source are credited.

Open AccessThis article is distributed under the terms of the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0), which permits use, duplication, adaptation, distribution, and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Authors and Affiliations

  • Thomas Volling
    • 1
    Email author
  • Martin Grunewald
    • 1
  • Thomas S. Spengler
    • 1
  1. 1.Institute of Automotive Management and Industrial ProductionTechnische Universität BraunschweigGermany

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