A column generation-based heuristic algorithm for an inventory routing problem with perishable goods

Tung Le, Ali Diabat, Jean Philippe Richard, Yuehwern Yih

Research output: Contribution to journalArticle

Abstract

An inventory routing problem is a variation of the vehicle routing problem in which inventory and routing decisions are determined simultaneously over a given time horizon. The objective is to minimize the sum of transportation and inventory costs. In this paper, we study a specific inventory routing problem in which goods are perishable (PIRP). We develop a mathematical model for PIRP and exploit its structure to develop a column generation-based solution approach. Cutting planes are added to improve the formulation. We present computational experiments to demonstrate that our methodology is effective, and that the integration of routing and inventory can yield significant cost savings.

Original languageEnglish (US)
Pages (from-to)1481-1502
Number of pages22
JournalOptimization Letters
Volume7
Issue number7
DOIs
StatePublished - Oct 2013

Keywords

  • Column generation
  • Integer programming
  • Inventory routing
  • Perishable goods
  • Vehicle routing

ASJC Scopus subject areas

  • Control and Optimization

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