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Authors: Ehsan Yadollahi 1 ; El-Houssaine Aghezzaf 1 ; Joris Walraevens 2 and Birger Raa 1

Affiliations: 1 Faculty of Engineering and Architecture and Ghent University, Belgium ; 2 Ghent University, Belgium

Keyword(s): Safety Stock, Storage Capacity Limitation, Stochastic Demands, Inventory Routing Problem.

Abstract: A challenging question in Stochastic Periodic Inventory Routing Problem (SPIRP) is how to deal with stochastic demand rates, while minimizing the costs (transportation, inventory, and storage) and finding the best routing system. In this paper, we reformulate the SPIRP model to a safety stock-based SPIRP where the inventory storage capacity at the retailers are considered as variables and retailer’s demand rate is stochastic. The supply chain planner needs to find the best routing system to replenish the retailers with the most optimum level of inventory, while the service level is satisfied in a long term planning horizon. Four different policies for storage capacity optimization are presented, evaluated, and compared in an illustrative example. The impact of storage capacity limitation is considered based on the defined policies to measure their compatibility for different situations.

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Paper citation in several formats:
Yadollahi, E.; Aghezzaf, E.; Walraevens, J. and Raa, B. (2018). Optimizing Storage Capacity of Retailers in Stochastic Periodic Inventory Routing Problem. In Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - ICORES; ISBN 978-989-758-285-1; ISSN 2184-4372, SciTePress, pages 217-223. DOI: 10.5220/0006620302170223

@conference{icores18,
author={Ehsan Yadollahi. and El{-}Houssaine Aghezzaf. and Joris Walraevens. and Birger Raa.},
title={Optimizing Storage Capacity of Retailers in Stochastic Periodic Inventory Routing Problem},
booktitle={Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - ICORES},
year={2018},
pages={217-223},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006620302170223},
isbn={978-989-758-285-1},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 7th International Conference on Operations Research and Enterprise Systems - ICORES
TI - Optimizing Storage Capacity of Retailers in Stochastic Periodic Inventory Routing Problem
SN - 978-989-758-285-1
IS - 2184-4372
AU - Yadollahi, E.
AU - Aghezzaf, E.
AU - Walraevens, J.
AU - Raa, B.
PY - 2018
SP - 217
EP - 223
DO - 10.5220/0006620302170223
PB - SciTePress

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