Synchronized Development of Production, Inventory, and Distribution Schedules
Transportation Science
The Stochastic Inventory Routing Problem with Direct Deliveries
Transportation Science
Minimizing the Total Cost in an Integrated Vendor--Managed Inventory System
Journal of Heuristics
A Decomposition Approach for the Inventory-Routing Problem
Transportation Science
A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem
Transportation Science
Leveraging saving-based algorithms by master-slave genetic algorithms
Engineering Applications of Artificial Intelligence
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In this paper, we describe research to improve Frito-Lay's outbound supply chain activities by simultaneously optimizing its inventory and transportation decisions. Motivated by Frito-Lay's practice, we first develop a mixed-integer programming formulation from which we develop a large-scale, integrated multiproduct inventory lot-sizing and vehicle-routing model with explicit (1) inventory holding costs, truck loading and dispatch costs, and mileage costs; (2) production, storage, and truck capacity limitations; and (3) direct (plant-to-store) and interplant (plant-to-plant) delivery considerations. Second, we present an iterative solution approach in which we decompose the problem into inventory and routing components. The results demonstrate the impact of direct deliveries on distribution costs and show that direct deliveries and efficient inventory and routing decisions can provide significant savings opportunities over two benchmark models, one of which represents the existing Frito-Lay system. We implemented our models using an application that allows strategy evaluation, analysis of output files, and technology transfer. This application was particularly useful in evaluating potential direct-delivery locations and inventory reductions throughout the supply chain.