Heuristic approaches for the inventory-routing problem with backlogging

Authors:
Tamer F. Abdelmaguid;Maged M. Dessouky;Fernando Ordóñez
Affiliations:
Cairo University, Faculty of Engineering, Mechanical Design & Production Department, Giza 12613, Egypt;Daniel J. Epstein Department of Industrial and Systems Engineering, 3715 McClintock Avenue, University of Southern California, Los Angeles, CA 90089-0193, USA;Daniel J. Epstein Department of Industrial and Systems Engineering, 3715 McClintock Avenue, University of Southern California, Los Angeles, CA 90089-0193, USA
Venue:
Computers and Industrial Engineering
Year:
2009

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Abstract

We study an inventory-routing problem in which multiperiod inventory holding, backlogging, and vehicle routing decisions are to be taken for a set of customers who receive units of a single item from a depot with infinite supply. We consider a case in which the demand at each customer is deterministic and relatively small compared to the vehicle capacity, and the customers are located closely such that a consolidated shipping strategy is appropriate. We develop constructive and improvement heuristics to obtain an approximate solution for this NP-hard problem and demonstrate their effectiveness through computational experiments.