INVENTORY/ROUTING: REDUCTION FROM AN ANNUAL TO A SHORT-PERIOD PROBLEM.

Moshe Dror, Michael Ball

Research output: Contribution to journalArticle

168 Citations (Scopus)

Abstract

The inventory-routing problem is a distribution problem in which each customer maintains a local inventory of a product such as heating oil and consumes a certain amount of that product each day. Given a central supplier, the objective is to minimize the annual delivery costs while attempting to insure that no customer runs out of the commodity at any time. In this article we present a procedure for reducing the long-term version of this problem to a single-period problem, which can be attacked using standard routing algorithms. The reduction procedure involves the definition of single-period costs that reflect long-term costs, the definition of a safety stock level and a specification of the customer subset to be considered during a single period.

Original languageEnglish (US)
Pages (from-to)891-905
Number of pages15
JournalNaval Research Logistics
Volume34
Issue number6
StatePublished - Dec 1987
Externally publishedYes

Fingerprint

Annual
Routing
Customers
Costs
Routing Problem
Routing algorithms
Routing Algorithm
Heating
Safety
Specification
Specifications
Minimise
Subset
Inventory routing
Standards
Oils
Oil
Suppliers
Commodities
Safety stock

ASJC Scopus subject areas

  • Management Science and Operations Research

Cite this

INVENTORY/ROUTING : REDUCTION FROM AN ANNUAL TO A SHORT-PERIOD PROBLEM. / Dror, Moshe; Ball, Michael.

In: Naval Research Logistics, Vol. 34, No. 6, 12.1987, p. 891-905.

Research output: Contribution to journalArticle

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