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

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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.

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Authors and Affiliations

  1. Deccan International, San Diego, CA, 92121-3737, USA

    Tung Le

  2. Masdar Institute of Science and Technology, Abu Dhabi, UAE

    Ali Diabat

  3. University of Florida, Gainesville, FL, 32611-6595, USA

    Jean-Philippe Richard

  4. Purdue University, West Lafayette, IN, 47907-2023, USA

    Yuehwern Yih

Authors
  1. Tung Le
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  2. Ali Diabat
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  3. Jean-Philippe Richard
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  4. Yuehwern Yih
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Correspondence to Ali Diabat.

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Le, T., Diabat, A., Richard, JP. et al. A column generation-based heuristic algorithm for an inventory routing problem with perishable goods. Optim Lett 7, 1481–1502 (2013). https://doi.org/10.1007/s11590-012-0540-2

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  • DOI: https://doi.org/10.1007/s11590-012-0540-2

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