A matheuristic for solving inventory sharing problems

Achamrah, Fatima Ezzahra; Riane, Fouad; Di Martinelly, Christine; Limbourg, Sabine

doi:10.1016/j.cor.2021.105605

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A matheuristic for solving inventory sharing problems

Achamrah, Fatima Ezzahra; Riane, Fouad; Di Martinelly, Christine et al.

2022 • In Computers and Operations Research

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https://hdl.handle.net/2268/265210

DOI
10.1016/j.cor.2021.105605

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Keywords :

Shared inventory; Transshipment; Inventory routing problem; Matheuristic

Abstract :

[en] In this paper, we addressed a two-level supply chain in which a company manufactures products and sells them through its point of sale network. The problem of concern is a multi-product, multi-vehicle inventory sharing routing problem. We formulated it as a mixed-integer linear programming problem. We also designed a two-phase matheuristic that integrates mathematical modelling strengthened with relevant derived valid inequalities and hybridisation of sophisticated metaheuristics: Genetic Algorithm and Simulated Annealing. We tested 660 best known instances designed for the single and multi-vehicle inventory routing problem, and the results showed that the matheuristic outperformed the best known algorithms regarding computational times and enhanced 156 solutions for large instances. Extra experiments were conducted on a set of data specially designed for the multi-product multi-vehicle inventory sharing routing problem. Computational results highlighted the benefits of sharing inventory on the overall supply chain. Finally, a sensitivity analysis was conducted, which revealed the extent to which inventory sharing among different points of sale can be cost-effective by the savings it brings to reduce lost sales and inventory holding.

Disciplines :

Quantitative methods in economics & management

Author, co-author :

Achamrah, Fatima Ezzahra

Riane, Fouad

Di Martinelly, Christine

Limbourg, Sabine ; Université de Liège - ULiège > HEC Liège : UER > UER Opérations : Logistique

Language :

English

Title :

A matheuristic for solving inventory sharing problems

Publication date :

2022

Journal title :

Computers and Operations Research

ISSN :

0305-0548

eISSN :

1873-765X

Publisher :

Elsevier, Oxford, United Kingdom

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 22 November 2021

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