An approach for inventory routing under vendor managed inventory system
by Atul B. Borade, Satish V. Bansod
International Journal of Services Sciences (IJSSCI), Vol. 3, No. 4, 2010

Abstract: Vendor managed inventory is a collaborative business practice adopted by organisations to improve the business performance. Under this practice, the retailers share demand and other related information with the manufacturer, who in turn manages the inventory of the retailer. In such event, the manufacturer assumes the responsibility of taking the decisions about size and time of delivery, vehicle routing, etc. This study examines the vendor managed inventory practice, specifically inventory routing problem, for retailers and a manufacturer when there is a wide fluctuation of daily demand. We have addressed a special issue related to inventory replenishment in vendor managed inventory system, where demand exceeds the finite production capacity .We construct a numerical experiment in MATLAB to find the optimal daily demand distribution and vehicle routing using fuzzy min-max learning algorithm. First, for deciding the sequence in which the quantity to be delivered to the retailers, a fuzzy set hyperboxes are used .Then, assignment is done with the help of discounting coefficient. Lastly, routing is done using fuzzy iterative algorithm. The focus of this paper is on demonstrating the effectiveness of our approach and comparing the results with that of simple greedy heuristics.

Online publication date: Sun, 03-Oct-2010

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services Sciences (IJSSCI):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com