Determination of inventory replenishment policy with the open vehicle routing concept in a multi-depot and multi-retailer distribution system

Main Article Content

Anchalee Supithak
Wisut Supithak

Abstract

The Inventory Open Vehicle Routing Problem (IOVRP) involves decisions in inventory replenishment and vehicle routing of a system having multiple depots and multiple retailers. The research objective of this work is to develop practical replenishment decisions by applying meta-heuristics of an Ant Colony Algorithm. The routing solutions applying IOVRP and an Inventory Routing Problem (IRP) that are solved and compared to measure the methods’ performance. The result shows that the IOVRP gives 24.66% better solutions in term of total costs than the IRP. Additionally, sensitivity analysis of related factors, i.e., inventory holding costs, ordering cost and vehicle capacity, was performed on the percentage deviation of total costs. Based on the analysis of variance, there is an advantage of IOVRP over IRP when the problem involves small vehicle capacity, low ordering costs, and high holding costs.

Article Details

How to Cite
Supithak, A., & Supithak, W. (2018). Determination of inventory replenishment policy with the open vehicle routing concept in a multi-depot and multi-retailer distribution system. Engineering and Applied Science Research, 45(1), 23–31. Retrieved from https://ph01.tci-thaijo.org/index.php/easr/article/view/71729
Section
ORIGINAL RESEARCH
Author Biographies

Anchalee Supithak, Department of Industrial Engineering, Faculty of Engineering, Thai-Nichi Institute of Technology, Bangkok 10220, Thailand

Industrial Engineering Department, Engineering Faculty

Wisut Supithak, Department of Industrial Engineering, Faculty of Engineering, Kasetsart University, Bangkok 10900, Thailand

Industrial Engineering Department,
Engineering Faculty, Kasetsart University

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