Ant colony optimization for one-to-many network inventory routing problem

L. Wong, N. H. Moin

Research output: Chapter in Book/Report/Conference proceedingConference PaperOther

Abstract

The integration of inventory and routing is a very important aspect of supply chain management. In this paper, we present a one-to-many inventory routing problem (IRP) network consisting of a manufacturer that produces multi products to be transported to many geographically dispersed customers. We consider a finite horizon where a fleet of capacitated homogeneous vehicles, housed at a depot/warehouse, transports products from the warehouse to meet the demand specified by the customers in each period. The demand for each product is deterministic and time varying and each customer requests a distinct product. The inventory holding cost is product specific and is incurred at the customer sites. The objective is to determine the amount on inventory and to construct a delivery schedule that minimizes both the total transportation and inventory holding cost while ensuring each customer's demand is met over the planning horizon. The problem is formulated as a mixed integer programming problem and is solved using CPLEX to get the lower bound and upper bound (the best integer solution) for each problem considered. We propose a modified ant colony optimization (ACO) by subdividing the ants into subpopulation where each subpopulation consists of different set of inventory level. The routes are improved by using local search. The algorithm performs better on large instances compared to the upper bound and performs equally well for small and medium instances.

Original languageEnglish
Title of host publicationIEEM 2014 - 2014 IEEE International Conference on Industrial Engineering and Engineering Management
PublisherIEEE, Institute of Electrical and Electronics Engineers
Pages877-881
Number of pages5
ISBN (Electronic)9781479964109
DOIs
Publication statusPublished - 2014
Externally publishedYes
EventIEEE International Conference on Industrial Engineering and Engineering Management (IEEM) 2014 - Selangor, Malaysia
Duration: 9 Dec 201412 Dec 2014
http://ieeexplore.ieee.org/xpl/mostRecentIssue.jsp?punumber=7048056

Publication series

NameIEEE International Conference on Industrial Engineering and Engineering Management
Volume2015-January
ISSN (Print)2157-3611
ISSN (Electronic)2157-362X

Conference

ConferenceIEEE International Conference on Industrial Engineering and Engineering Management (IEEM) 2014
Abbreviated titleIEEM 2014
CountryMalaysia
CitySelangor
Period9/12/1412/12/14
Internet address

Keywords

  • Ant colony Optimization
  • inventory routing

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