Journal article
Delivery Cost Approximations for Inventory Routing Problems in a Rolling Horizon Framework
Department of Civil and Environmental Engineering, Massachusetts Institute of Technology, Cambridge, Massachusetts 021391
Graduate Program in Operations Research, Mechanical Engineering Department, The University of Texas at Austin, Austin, Texas 787122
DSC Communications, Austin, Texas 78758-40173
College of Business and Public Administration, University of Arizona, Tucson, Arizona 857214
The inventory routing problem considered in this paper is concerned with the repeated distribution of a commodity, such as heating oil, over a long period of time to a large number of customers. The problem involves a central depot as well as various satellite facilities which the drivers can visit during their shift to refill their vehicles.
The customers maintain a local inventory of the commodity. Their consumption varies daily and cannot be predicted deterministically. In case of a stockout, a direct delivery is made and a penalty cost is incurred. In this paper, we present incremental cost approximations to be used in a rolling horizon framework for the problem of minimizing the total expected annual delivery costs.
| Language: | English |
|---|---|
| Publisher: | Transportation Science Section of the Operations Research Society of America |
| Year: | 2002 |
| Pages: | 292-300 |
| ISSN: | 15265447 and 00411655 |
| Types: | Journal article |
| DOI: | 10.1287/trsc.36.3.292.7829 |
