Abstract

We address the combined problem of allocating a scarce resource among several locations, and planning deliveries using a fleet of vehicles. Demands are random, and holding and shortage costs must be considered in the decision along with transportation costs. We show how to extend some of the available methods for the deterministic vehicle routing problem to this case. Computational results using one such adaptation show that the algorithm is fast enough for practical work, and that substantial cost savings can be achieved with this approach.

Authors
Awi Federgruen and Paul Zipkin
Format
Journal Article
Publication Date
Journal
Operations Research

Full Citation

Federgruen, Awi and Paul Zipkin
. “A combined vehicle routing and inventory allocation problem.”
Operations Research
vol.
32
, (January 01, 1984):
1019
-
1037
.