A Robust Mathematical Model and Heuristic Solution Algorithm for Integrated Production-Routing-Inventory Problem Of Perishable Products with Lateral Transshipment

Document Type : Research Paper

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Abstract

In this paper, a robust mathematical model for integrated production- routing- inventory problem ofperishable product under uncertain demand in a network consisting of a producer and set of retailers, is presented, where the transshipment among retailers is considered to deal with uncertainty of customers' demand. Moreover, the tradeoff between the solution robustness and model robustness can help in decision making about planning of deliveries, the quantity of production and the quantity of transshipment among retailers. Since the mentioned problem is in category of NP-Hard problems, a heuristic solution algorithm is proposed for solving it that guide the solution to a better solution through conducting the best change in vehicle routes in each step of search. Finally, the proposed algorithm isapplied on benchmark instances from literature and a real case study, that results reveal the effectiveness of the algorithm in terms of time and quality of solutions.

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References

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Journal of Industrial Engineering Research in Production Systems
Volume 4, Issue 8
February 2017
Pages 195-211

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