Solving an inventory routing problem in supply chain by DC programming and DCA

Authors:
Quang Thuan Nguyen;Hoai An Le Thi
Affiliations:
University of Paul Verlaine - Metz, Ile de Saulcy, Metz, France;University of Paul Verlaine - Metz, Ile de Saulcy, Metz, France
Venue:
ACIIDS'11 Proceedings of the Third international conference on Intelligent information and database systems - Volume Part II
Year:
2011

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Abstract

Inventory routing problem (IRP) has received growing attention from both researchers and supply chain planners. It can be formulated as a mixed 0-1 nonlinear programming problem that is difficult to solve. We propose a new approach based on DC (Difference of Convex Functions) programming and DCA (DC Algorithm) for solving this challenging problem. Using an exact penalty technique and a decomposition technique, the original problem is transformed into an equivalent DC problem. DCA applied on the resulting problem gives the promising results.