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TRANSCI
2002

The Stochastic Inventory Routing Problem with Direct Deliveries

13 years 3 months ago
The Stochastic Inventory Routing Problem with Direct Deliveries
Vendor managed inventory replenishment is a business practice in which vendors monitor their customers' inventories, and decide when and how much inventory should be replenished. The inventory routing problem addresses the coordination of inventory management and transportation. It needs to be solved to design a strategy that realizes the potential savings in inventory and transportation costs brought about by vendor managed inventory replenishment. The inventory routing problem is hard, especially if a large number of customers is involved. We formulate the inventory routing problem as a Markov decision process, and we propose approximation methods to find good solutions with reasonable computational effort. Computational results are presented for the inventory routing problem with direct deliveries.
Anton J. Kleywegt, Vijay S. Nori, Martin W. P. Sav
Added 23 Dec 2010
Updated 23 Dec 2010
Type Journal
Year 2002
Where TRANSCI
Authors Anton J. Kleywegt, Vijay S. Nori, Martin W. P. Savelsbergh
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