A branch-and-cut algorithm for multi-depot inventory-routing problem with split deliveries

Abstract

In this paper we model and solve a multi-depot inventory-routing problem with split-deliveries (MDIRPSD). The problem emerges under the vendor-managed inventory systems paradigm, when deliveries are made from multiple depots and customers can be served several times over a same period. The MDIRPSD integrates supply and distribution decisions and has recently been proposed in the literature. We present a new mathematical formulation, taking into account inventory holding costs, and we also propose a new inventory policy. We have designed and implemented a new branch-and-cut that overcome the similar approach in the literature. Finally, we report comparative results between the two inventory policies considered.