TY - JOUR
T1 - An inventory routing problem for deteriorating items with dynamic demand and spoilage rate
AU - WIDYADANA, I. Gede Agus
AU - WAHYUDI, Krisna
AU - SUTAPA, I. Nyoman
N1 - Publisher Copyright:
© 2021 Faculty of Organizational Sciences, Belgrade. All rights reserved.
PY - 2021
Y1 - 2021
N2 - Inventory routing problems (IRP) are among important tools to be used for implementing vendor manage inventory. Many researchers try to develop methods for solving inventory routing problem, however, only a few developed methods for inventory routing problems for spoilage items. In reality, many items are deteriorated and spoiled during transportation and storage period. In this paper, we developed a model and methods to solve the inventory routing problem for deteriorating items with dynamic demand and spoilage rate, i.e., demand varies and items spoil during planning periods. Those cases are more realistic since many commodities such as fruits and vegetables have dynamic demand and spoilage rate. A Genetic Algorithm and Particle Swarm Optimization are developed to solve the problem with various demands in a specific planning period since the problem is Np-hard. A numerical example and sensitivity analysis are conducted to verify the model, and to get management insight it. The result is interesting and support general hypothesis that dynamic demands result in higher inventory cost than the static demands, and the increasing demand results in increasing inventory cost. Also, the results show that increasing demand and deteriorating rates significantly affect the total cost, therefore, the developed model is important and significantly useful to be used for solving IRP with dynamic demand and spoilage items.
AB - Inventory routing problems (IRP) are among important tools to be used for implementing vendor manage inventory. Many researchers try to develop methods for solving inventory routing problem, however, only a few developed methods for inventory routing problems for spoilage items. In reality, many items are deteriorated and spoiled during transportation and storage period. In this paper, we developed a model and methods to solve the inventory routing problem for deteriorating items with dynamic demand and spoilage rate, i.e., demand varies and items spoil during planning periods. Those cases are more realistic since many commodities such as fruits and vegetables have dynamic demand and spoilage rate. A Genetic Algorithm and Particle Swarm Optimization are developed to solve the problem with various demands in a specific planning period since the problem is Np-hard. A numerical example and sensitivity analysis are conducted to verify the model, and to get management insight it. The result is interesting and support general hypothesis that dynamic demands result in higher inventory cost than the static demands, and the increasing demand results in increasing inventory cost. Also, the results show that increasing demand and deteriorating rates significantly affect the total cost, therefore, the developed model is important and significantly useful to be used for solving IRP with dynamic demand and spoilage items.
KW - Dynamic Demand
KW - Genetic Algorithm
KW - Inventory
KW - Particle Swarm Optimization
KW - Spoilage
UR - http://www.scopus.com/inward/record.url?scp=85109850414&partnerID=8YFLogxK
U2 - 10.2298/YJOR200516037W
DO - 10.2298/YJOR200516037W
M3 - Article
AN - SCOPUS:85109850414
SN - 0354-0243
VL - 31
SP - 153
EP - 164
JO - Yugoslav Journal of Operations Research
JF - Yugoslav Journal of Operations Research
IS - 2
ER -