Scenario Tree-Based Heuristics for Stochastic Inventory-Routing Problems

Authors:
Lars Magnus Hvattum;Arne Løkketangen;Gilbert Laporte
Affiliations:
Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, N-7491 Trondheim, Norway;Molde University College, N-6402 Molde, Norway;Canada Research Chair in Distribution Management, HEC Montréal, Montréal, Quebec H3T 2A7, Canada
Venue:
INFORMS Journal on Computing
Year:
2009

Citing 7
Cited 3

A Heuristic for Moment-Matching Scenario Generation

Computational Optimization and Applications
Reactive GRASP: An Application to a Matrix Decomposition Problem in TDMA Traffic Assignment

INFORMS Journal on Computing
The Stochastic Inventory Routing Problem with Direct Deliveries

Transportation Science
Dynamic Programming Approximations for a Stochastic Inventory Routing Problem

Transportation Science
A Price-Directed Approach to Stochastic Inventory/Routing

Operations Research
A Decomposition Approach for the Inventory-Routing Problem

Transportation Science
Approximate Dynamic Programming: Solving the Curses of Dimensionality (Wiley Series in Probability and Statistics)

Approximate Dynamic Programming: Solving the Curses of Dimensionality (Wiley Series in Probability and Statistics)

Invited Review: Industrial aspects and literature survey: Combined inventory management and routing

Computers and Operations Research
Robust Inventory Routing Under Demand Uncertainty

Transportation Science
Combining Monte Carlo simulation with heuristics for solving the inventory routing problem with stochastic demands

Proceedings of the Winter Simulation Conference

Quantified Score

Hi-index	0.00

Visualization

Abstract

In vendor-managed inventory replenishment, the vendor decides when to make deliveries to customers, how much to deliver, and how to combine shipments using the available vehicles. This gives rise to the inventory-routing problem in which the goal is to coordinate inventory replenishment and transportation to minimize costs. The problem tackled in this paper is the stochastic inventory-routing problem, where stochastic demands are specified through general discrete distributions. The problem is formulated as a discounted infinite-horizon Markov decision problem. Heuristics based on finite scenario trees are developed. Computational results confirm the efficiency of these heuristics.