An improved model for large scale inventory routing problem with useful properties

Authors:
Jianxiang Li;Feng Chu;Haoxun Chen
Affiliations:
Department of Automatic Control, Beijing Institute of Technology, Beijing, China and Industrial Systems Optimization Lab, University of Technology of Troyes, Troyes, France;Industrial Systems Optimization Lab, University of Technology of Troyes, Troyes, France;Industrial Systems Optimization Lab, University of Technology of Troyes, Troyes, France
Venue:
CCDC'09 Proceedings of the 21st annual international conference on Chinese control and decision conference
Year:
2009

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Abstract

In the previous work, we developed a model for inventory routing problem with split delivery and proposed a hybrid approach based on Lagrangian relaxation to solve the model. Numerical experiments show that the proposed hybrid approach can find a high quality near-optimal solution for the problems with up to 200 customers in a reasonable computation time. In this paper, we further improve and simplify the model by introducing a new parameter - transportation cost that is generated by the vehicle's self-load. We derive some important properties of the optimal solution of the improved model. These properties lay a foundation of the proposed Lagrangian relaxation method. They can be also used as a tool to gauge and improve the quality of solutions.