Solving the single-period inventory routing problem with the deterministic approach

• Main Authors: Abdul Rahim, Mohd Kamarul Irwan, Nadarajan, Santhirasegaran, Ahmad, Mohd Akhir
• Format: Article
• Language: English
• Published: School of Engineering, Taylor’s University College 2017
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/26226/1/JEST%20SI%202017%20158%20168.pdf; http://repo.uum.edu.my/26226/; http://jestec.taylors.edu.my/Special%20Issue_ISSC_2016.htm

This paper considers the problem of managing inventory and routing problems in a two-stage supply chain system under a Vendor Managed Inventory (VMI) policy. VMI policy is an integrating decisions between a supplier and the customers. Thus, we assumed that the demand at each customer is stationary and the warehouse is implementing a VMI. The focus of this research is to optimize the inventory and the transportation costs of the customers for a twostage supply chain system. The problem is to define the delivery quantities, delivery times and routes to the customers for the single-period deterministic inventory routing problem (SP-DIRP) system. As a result, a linear mixedinteger program is established for the solutions of the SP-DIRP problem. A detailed analysis of an illustrative example for solving the SP-DIRP problem is presented to describe the integration of the proposed model.