A new hybrid GA-PSO method for solving multi-period inventory routing problem with considering financial decisions
Abstract: Integration of
various logistical components in supply chain management, such as
transportation, inventory control and facility location are becoming common
practice to avoid sub-optimization in nowadays’ competitive environment. The
integration of transportation and inventory decisions is known as inventory
routing problem (IRP) in the literature. The problem aims to determine the
delivery quantity for each customer and the network routes to be used in each
period, so that the total inventory and transportation costs are to be
minimized. On the contrary of conventional IRP that each retailer can only
provide its demand from the supplier, in this paper, a new multi-period,
multi-item IRP model with considering lateral trans-shipment, back-log and
financial decisions is proposed as a business model in a distinct organization.
The main purpose of this paper is applying an applicable inventory routing
model with considering real world setting and solving it with an appropriate
method.
Keywords: inventory routing
problem (IRP); Lateral trans-shipment; Genetic Algorithm (GA); PSO; hybrid
meta-heuristic
Author: Masoud Rabbani, Milad
Baghersad, Ruholla Jafari
Journal Code: jptindustrigg130048
