An Integrated Inventory-Transportation System with Periodic Pick-Ups and Leveled Replenishment
- 833 Downloads
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.
Keywordsinbound logistics milk run design inventory routing
- Baudin, Michel (2004): Lean Logistics: The Nuts and Bolts of Delivering Materials and Goods, Productivity Press: New York, NY.Google Scholar
- Bell, Walter J., Louis M. Dalberto, Marshall L. Fisher, Arnold J. Greenfield, R. Jaikumar, Pradeep Kedia, Robert G. Mack, and Paul J. Prutzman (1983): Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer, Interfaces, 13 (6): 4–23.CrossRefGoogle Scholar
- Golden, Bruce, Arjang Assad, and Roy Dahl (1984): Analysis of a Large Scale Vehicle Routing Problem with an Inventory Component, Large Scale Systems, 7 (2–3): 181–190.Google Scholar
- Vajda, Steven (1972): Probabilistic Programming, Academic Press: New York, NY.Google Scholar
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.