The Collaborative Inventory Routing Problem By Genetic Algorithm Approach

Abstract

Collaborative Inventory Control and The Vehicle Routing between locations of distribution center, hubs and retailer is an important strategic decision in distribution network design, in general as it relates to service level quality, profitability and productivity of the company. The Collaborative Inventory Control problem is the problem of determine the optimal order quantity as well as the optimal inventory level with existing the inventory transfer between warehouses. The Vehicle Routing Problem is observed with time window constraint. The aim of the two models are to minimize the total inventory cost, and total transportation cost respectively. Moreover, lot sizing is also play an important role in this distribution network. It decides when a retailer needs to order with a sufficient quantity to get the optimal cost. This can help retailer to save money, save time and have the control of their inventory better. Firstly, Collaborative Inventory Problem will be compared with non-collaborative problem by proposing a Mixed integer linear programming models. Then routing and lot sizing would be solved by Genetic Algorithm for large size in comparing to small size solution.