Study On Deterministic Operational Inventory Routing Problem

The research content of this paper comes from the Foundation for the Author of National Excellent Doctoral Dissertation of PR China (No. 200565).A deterministic operational inventory routing problem of a two-echelon supply chain distribution system that contains a supplier and n retailer is researched separately under the mode of traditional retailer managed inventory and the modern vendor managed inventory.On the one hand, under the mode of traditional retailer managed inventory, we firstly discuss the order and delivery policies of the supplier and retailers when they make their decisions independently using C-W saving algorithm. Then a joint distribution policy is proposed according to the concept of TEMPORAL COST under the framework of rolling period strategy. The supplier can adjust the date properly to replenish the customers, in other words, the customers who should be replenished at their best EOQ time in different days may be adjusted to be replenished at a common date to improve vehicle loading rate.On the other hand, under the mode of modern vendor managed inventory, owing to the disadvantage that we did not consider the cost of transportation when calculating the economic replenish quantity, we design a workable method to calculate the economic replenish quantity integrating the fact of both inventory and transportation. Then we use C-W saving algorithm to obtain the daily replenishing route. Then according some selecting rule, we reallocate the rest capacity of vehicle to one or more retailers of this route to improve vehicle loading rate and finally to reduce the yearly total cost.The numerical examples demonstrate the effectiveness of above policies.