Modelling multi-tour inventory routing problem for deteriorating items with time windows

Document Type: Article

Authors

1 Department of Industrial Engineering, Petra Christian University, Surabaya, Indonesia.

2 Department of Information and Communication Sciences, Sophia University, Tokyo, Japan

Abstract

In recent decades, there are intensive researches on deteriorating inventory. However, only a few researchers focus on the inventory routing problem for deteriorating item. There are many items such as foods, electronic products that deteriorate with time, and many other products in the market also have perishable characteristic. The items not only decay during the stockpiling period but they also deteriorate throughout transportation time. Since deteriorated rate and time is necessary, in this paper, an inventory routing problem with time windows for deteriorating items is developed. Particle Swarm Optimization (PSO) is used to solve the problem since PSO can solve problems in a reasonable period with near optimal solutions. We use two examples to illustrate the model. In a sensitivity analysis, way parameters that impact costs are demonstrated. Our results show that the deteriorating rate in inventory has bigger effects than deteriorating rate in the vehicle, so this research has a significant contribution and managers can give more effort to reduce deteriorating in inventory than the deteriorating rate in vehicles.

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