A two-stage procedure for efficiently solving the integrated problem of production, inventory, and distribution of industrial products
Date
2019-12-24
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Abstract
This paper deals with the problem of optimally planning the production, inventory and distribution of products transported via multi-compartment vehicles. It assumes that facilities in the distribution net- work have preservation-storing devices to inventory products on-site. Production activities may be per- formed on any time period of the planning horizon. Due to problem complexity, a two-stage solution strategy that first generates a set of multi-period distribution routes through a column generation ap- proach is proposed. The routes are used for feeding the MILP formulation of the problem. Several valid inequalities are proposed for expediting the MILP resolution. The aim is to maximize the profit obtained by the company that fabricates and distributes the products. This profit is computed as the total income from sales minus the sum of all costs incurred along the planning horizon. The effectiveness of the two- stage solution strategy is tested on an extensive set of realistic instances.
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Keywords
Production planning, Inventory routing, Multi-compartment vehicles, Column generation, MILP
Citation
Computers and Chemical Engineering.134(2020)
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Except where otherwised noted, this item's license is described as info:eu-repo/semantics/openAccess