Archives > Volume 12 | Number 2 | June 2017 | > pp 115–126
Advances in Production Engineering & Management
Volume 12 | Number 2 | June 2017 | pp 115–126
An inventory model with METRIC approach in location-routing-inventory problem
Gholamian, M.R.; Heydari, M.
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A B S T R A C T
In this paper, the stochastic location-routing-inventory problem is considered in which retailers' demands and lead-times are stochastic. Demand quantities follow Poisson distribution and lead-times are functions of the shortage quantity. It is also assumed that both retailers and distributors hold inventory and follow (S-1, S) inventory policy. According to these assumptions, we use METRIC (i.e., Multi-Echelon Technique for Recoverable Item Control) approach to model the problem. For this purpose, a mixed integer stochastic programming model is developed based on extending the basic location-inventory-routing model by adding METRIC stochastic relations into the model. Since solving the model with the exact method is very difficult, the Meta-heuristics are used in solving process. Specially, to empower the solution process, a hybrid method consists of simulated annealing and genetic algorithm is developed. The output results along with sensitivity analysis represent the capability of the model in taking to account the METRIC concepts in this type of supply chain problems. Meanwhile, the performance of developed hybrid Meta-heuristic method was checked and approved.
A R T I C L E I N F O
Keywords • Location-inventory-routing, Supply chain, Integrated supply chain management, METRIC approach, Genetic algorithm, Simulated annealing
Corresponding author • Gholamian, M.R.
Article history • Received 25 December 2016, Revised 21 April 2017, Accepted 25 April 2017
Published on-line • 31 May 2017
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