Journal
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
Volume 82, Issue -, Pages 193-204Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.omega.2018.01.006
Keywords
Routing; Production planning; Branch-and-cut; Strengthened lot-sizing inequalities
Funding
- Paul and Heidi Brown Professorship
- NSFC [71571092]
- General Research Project for Humanities and Social Sciences from Chinese Ministry of Education [11YJCZH137]
- Priority Academic Program Development of Jiangsu Higher Education Institutions (PAPD)
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This paper presents a generalized production-inventory-routing model with perishable inventory. We analyze the optimal integrated decisions of when and how much to deliver and sell products with varying manufacturing periods. We discuss main inventory management policies to demonstrate the applicability of the model in real-world applications for production routing problems (PRPs) with perishable inventory. Furthermore, an exact branch-and-cut algorithm is developed and discussed. We introduce new families of logical, strengthened lot-sizing and lifted Miller-Tucker-Zemlin subtour elimination constraints for the PRP with perishable inventory. Finally, we test the performance of the algorithm. We also implement and compare 8 suboptimal delivery and selling priority policies with an optimized policy to develop managerial implications. (C) 2018 Elsevier Ltd. All rights reserved.
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