Delivery cost approximations for inventory routing problems in a rolling horizon framework

Patrick Jaillet, Jonathan F. Bard, Liu Huang, Moshe Dror

Research output: Contribution to journalArticle

80 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)292-300
Number of pages9
JournalTransportation Science
Volume36
Issue number3
DOIs
Publication statusPublished - Aug 2002
Externally publishedYes

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ASJC Scopus subject areas

  • Management Science and Operations Research
  • Transportation

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