Publication
Lagrangian relaxation bounds for a production-inventory-routing problem
| Summary: | We consider a single item Production-Inventory-Routing problem with a single producer/supplier and multiple retailers. Inventory management constraints are considered both at the producer and at the retailers, following a vendor managed inventory approach, where the supplier monitors the inventory at retailers and decides on the replenishment policy for each retailer. We assume a constant production capacity. Based on the mathematical formulation we discuss a classical Lagrangian relaxation which allows to decompose the problem into four subproblems, and a new Lagrangian decomposition which decomposes the problem into just a production-inventory subproblem and a routing subproblem. The new decomposition is enhanced with valid inequalities. A computational study is reported to compare the bounds from the two approaches. © Springer International Publishing AG 2016. |
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| Main Authors: | Agra,A |
| Other Authors: | Adelaide Cerveira; Requejo,C |
| Year: | 2016 |
| Country: | Portugal |
| Document type: | conference output |
| Access type: | embargoed access |
| Associated institution: | INESC TEC |
| Language: | English |
| Origin: | INESC TEC |
| Summary: | We consider a single item Production-Inventory-Routing problem with a single producer/supplier and multiple retailers. Inventory management constraints are considered both at the producer and at the retailers, following a vendor managed inventory approach, where the supplier monitors the inventory at retailers and decides on the replenishment policy for each retailer. We assume a constant production capacity. Based on the mathematical formulation we discuss a classical Lagrangian relaxation which allows to decompose the problem into four subproblems, and a new Lagrangian decomposition which decomposes the problem into just a production-inventory subproblem and a routing subproblem. The new decomposition is enhanced with valid inequalities. A computational study is reported to compare the bounds from the two approaches. © Springer International Publishing AG 2016. |
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