An exact algorithm for the inventory routing problem with logistic ratio. (November 2019)

• Record Type: Journal Article
• Authors: Archetti, Claudia; Coelho, Leandro C.; Grazia Speranza, M.
• Is Part Of: Transportation research. Volume 131(2019)
• Page Start: 96
• Page End: 107
• Publication Date: 2019-11
• Subjects: Inventory routing problem -- Logistic ratio -- Exact method; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2019.09.016
• Languages: English
• ISSNs: 1366-5545

Abstract

Graphical abstract: Highlights: We provide a new exact algorithm for the inventory-routing problem with logistic ratio (IRP-LR). The IRP-LR contains a fractional objective function, and is solved iteratively. We prove that our method converges and compare its performance on bench-mark instances from the literature. We significantly improve the results of a competing algorithm. Abstract: The Inventory Routing Problem with Logistic Ratio (IRPLR) is a variant of the classical IRP where, instead of the total distribution cost, the ratio between the total distribution cost and the total delivered quantity is minimized, giving rise to a fractional objective function. An exact algorithm is known, solving instances with up to 15 customers. We propose an iterative exact algorithm where, at each iteration, an IRP with a linear objective function is solved. Experiments show that the proposed algorithm is faster when the number of vehicles is small, solving instances with more customers and a longer planning horizon.