Multi-product Inventory Routing Problem Considering Demand Uncertainty

T. Kawamura, T. Sato, Takayuki Shiina

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The inventory routing problem simultaneously considers both the inventory problem and the delivery problem; it determines the amount of delivery of inventory and the delivery route such that the total cost is minimized. In this study, we use stochastic programming to consider a multi-product inventory routing problem that considers the demand variation throughout multiple periods. Determining the delivery route for each period is difficult. Therefore, we propose a model that fixes the delivery route throughout the planning period and compare the calculation results to prove its practicality. In addition, the problem in this study is an integer programming problem, and solving a large-scale problem using the direct method would be time-consuming. Therefore, we apply the accelerated Benders decomposition method, which combines two cuts: the optimality cut with the solution of the linear relaxation problem, and the Pareto-optimal cut. We demonstrate its effectiveness through numerical experiments.

Original languageEnglish
Title of host publicationProceedings - 2022 12th International Congress on Advanced Applied Informatics, IIAI-AAI 2022
EditorsTokuro Matsuo, Kunihiko Takamatsu, Yuichi Ono
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages621-626
Number of pages6
ISBN (Electronic)9781665497558
DOIs
Publication statusPublished - 2022
Event12th International Congress on Advanced Applied Informatics, IIAI-AAI 2022 - Kanazawa, Japan
Duration: 2022 Jul 22022 Jul 7

Publication series

NameProceedings - 2022 12th International Congress on Advanced Applied Informatics, IIAI-AAI 2022

Conference

Conference12th International Congress on Advanced Applied Informatics, IIAI-AAI 2022
Country/TerritoryJapan
CityKanazawa
Period22/7/222/7/7

Keywords

  • Benders decomposition method
  • Optimization
  • Stochastic programming

ASJC Scopus subject areas

  • Computer Science Applications
  • Information Systems
  • Information Systems and Management
  • Decision Sciences (miscellaneous)

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