Inventory routing problem for deteriorating items with multi tours

Gede Agus Widyadana, Takashi Irohara, Syarif Daniel Budiman

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

The design of a supply chain has been considered by many practitioners and researchers recently. One model that is used to optimize distribution from a single facility (depot) to a set of retailers over a given planning horizon and considering stock management decisions is known as Inventory Routing Problem (IRP). This model tries to optimize the trade-offbetween inventory and transportation costs. Designing IRP becomes more complex if the items are deteriorating. In this research, we develop IRP for deteriorating items where there is possibility that every vehicle has more than one route. Multi routing is suitable for deteriorating items since it minimizes delivery time for each item. We consider more than one vehicle at the depot and each vehicle has similar maximum capacity. Since the problem is an NP hard problem, we use Particle Swarm Optimization (PSO) method to solve the problem. A numerical example and sensitivity analysis are conducted to show the deteriorating rate effects at the vehicle and inventory, and also inventory and transportation cost to the total supply chain cost. The results show that the total cost hour is more sensitive to different values inventory deteriorating rate than transportation deteriorating rate.

Original languageEnglish
Title of host publication6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016
PublisherIEOM Society
Pages2526-2537
Number of pages12
ISBN (Print)9780985549749
Publication statusPublished - 2016
Externally publishedYes
Event6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016 - Kuala Lumpur, Malaysia
Duration: 8 Mar 201610 Mar 2016

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
Volume8-10 March 2016
ISSN (Electronic)2169-8767

Conference

Conference6th International Conference on Industrial Engineering and Operations Management in Kuala Lumpur, IEOM 2016
Country/TerritoryMalaysia
CityKuala Lumpur
Period8/03/1610/03/16

Keywords

  • Deteriorating items
  • IRP
  • Inventory
  • Multi tour
  • PSO

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