A combined inventory routing and game theory approach to solve a real-life distribution problem Online publication date: Mon, 11-Aug-2014
by Manuel Mateo; El-Houssaine Aghezzaf; Pau Vinyes
International Journal of Business Performance and Supply Chain Modelling (IJBPSCM), Vol. 4, No. 1, 2012
Abstract: In this paper, we discuss a solution approach combining inventory routing and game theory to optimise logistical costs in a real-life distribution system. The problem consists in developing a distribution plan to replenish inventory at each of the involved sales-points, and then clustering them in groups willing to cooperate and share parts of their stocks. The distribution strategy and clustering should be achieved in a way that minimises total distribution and inventory costs of the system. Clearly, cooperation inside each cluster increases the extra potential inventory to which each member of the cluster has access, without having to support the related cost. As a result, the service level that each of these sales-point may achieve would increase. This approach is implemented for a real-life supply chain. A part of obtained results are reported and discussed in the paper.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business Performance and Supply Chain Modelling (IJBPSCM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com