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Agri-food supply chains with stochastic demands: A multi-period inventory routing problem with perishable products

Agri-food supply chains with stochastic demands: A multi-period inventory routing problem with perishable products
Agri-food supply chains with stochastic demands: A multi-period inventory routing problem with perishable products
This paper considers an agri-food supply chain with a single fresh food supplier, who owns a central warehouse that serves several retail centers. Retail centers carry a certain amount of inventory of the fresh product, which is prone to deterioration. The supplier makes both inventory and routing decisions to minimize the inventory, transportation, food-waste, and stock-out costs in the face of stochastic customer demand and perishable products that need to be delivered to each retail center. This inventory routing problem is known as perishable inventory routing problem (PIRP) with stochastic demands in the literature. We model it using a mixed integer program and propose a simheuristic algorithm, which integrates Monte Carlo simulation within an iterated local search, to solve it. Our experiments show that the proposed algorithm can improve the initial solution with reasonable computational times. The resulting procedure is easy to implement and is applicable to other domains where a multi-period PIRP with stochastic demands may appear.
Agri-food supply chain, inventory routing problem, stochastic demand, perishable product, metaheuristics, simulation
1569-190X
Onggo, Bhakti Stephan
8e9a2ea5-140a-44c0-9c17-e9cf93662f80
Panadero, Javier
2dca23fd-f7e1-491a-a9c0-a72f901c76e1
Corlu, Canan Gunes
ecb0f999-21d4-41e2-8cab-58a33706f09e
Juan, Angel A.
727ca41c-da96-40ea-8ea9-b27ab03aee49
Onggo, Bhakti Stephan
8e9a2ea5-140a-44c0-9c17-e9cf93662f80
Panadero, Javier
2dca23fd-f7e1-491a-a9c0-a72f901c76e1
Corlu, Canan Gunes
ecb0f999-21d4-41e2-8cab-58a33706f09e
Juan, Angel A.
727ca41c-da96-40ea-8ea9-b27ab03aee49

Onggo, Bhakti Stephan, Panadero, Javier, Corlu, Canan Gunes and Juan, Angel A. (2019) Agri-food supply chains with stochastic demands: A multi-period inventory routing problem with perishable products. Simulation Modelling Practice & Theory, 97. (doi:10.1016/j.simpat.2019.101970).

Record type: Article

Abstract

This paper considers an agri-food supply chain with a single fresh food supplier, who owns a central warehouse that serves several retail centers. Retail centers carry a certain amount of inventory of the fresh product, which is prone to deterioration. The supplier makes both inventory and routing decisions to minimize the inventory, transportation, food-waste, and stock-out costs in the face of stochastic customer demand and perishable products that need to be delivered to each retail center. This inventory routing problem is known as perishable inventory routing problem (PIRP) with stochastic demands in the literature. We model it using a mixed integer program and propose a simheuristic algorithm, which integrates Monte Carlo simulation within an iterated local search, to solve it. Our experiments show that the proposed algorithm can improve the initial solution with reasonable computational times. The resulting procedure is easy to implement and is applicable to other domains where a multi-period PIRP with stochastic demands may appear.

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2019_Onggo_MultiPeriod_IRP_in_Agriculture__SIMPAT - Accepted Manuscript
Restricted to Repository staff only until 19 August 2020.
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More information

Accepted/In Press date: 17 August 2019
e-pub ahead of print date: 19 August 2019
Published date: 1 December 2019
Keywords: Agri-food supply chain, inventory routing problem, stochastic demand, perishable product, metaheuristics, simulation

Identifiers

Local EPrints ID: 433681
URI: https://eprints.soton.ac.uk/id/eprint/433681
ISSN: 1569-190X
PURE UUID: 258dc212-7dc1-40cc-8d45-c15f010ef210
ORCID for Bhakti Stephan Onggo: ORCID iD orcid.org/0000-0001-5899-304X

Catalogue record

Date deposited: 30 Aug 2019 16:30
Last modified: 03 Dec 2019 01:22

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Contributors

Author: Javier Panadero
Author: Canan Gunes Corlu
Author: Angel A. Juan

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