Dual-Sourcing Inventory Routing Problem with Route-Dependent Lead Times in Rolling Horizon Framework

Abstract

Traditional inventory routing problems ignore the time consumption in transportation. In this paper, an inventory routing problem with air–land transportation and route-dependent lead times is studied. The model is based on the rolling horizon framework which can serve as a “here-and-now” approximation for multi-period inventory routing problems. A planning horizon crossing strategy is proposed to consider the effect of the single-period decision on long-term planning. The box uncertainty set is used to depict demands. A tractable closed-form robust solution for optimal replenishment quantity is derived. An adaptive variable neighborhood search algorithm is developed for this problem. A novel shaking phase is proposed, and the performance of shaking operators is evaluated in numerical experiments. Results also validate the effectiveness of the robust solution and the planning horizon crossing strategy.

Keywords

• dual-sourcing
• inventory routing problem
• rolling horizon
• robust optimization
• adaptive variable neighborhood search