THE PRICING AND INVENTORY ROUTING PROBLEM IN A SUPPLY CHAIN
The inventory routing problem (IRP) is to determine delivery routes from distributors to some geographically dispersed retailers and inventory policy for retailers. In the past, the pricing decision seems ignored in most IRP and supply chain management (SCM) researches. Since the pricing decision for retailers affects retailers demand. Furthermore, the demand affects the inventory cost and the transportation cost, pricing should be considered in the IRP problem to achieve the objective of maximal profit. In this paper, a mathematical model for the pricing and inventory routing problem (PIRP) is proposed. Since the solution for this model is an NP (non-polynomial) problem, a heuristic method, tabu search with different neighborhood search approaches, is used to obtain the optimal solution. The proposed heuristic method was compared with two other existing heuristic methods. The experimental results indicate that the proposed method is better than the two other methods in terms of average profit.
Supply chain management (SCM) Pricing and Inventory Routing Problem(PIRP) NP problem Heuristic methods.
S.C. Liu J.R. Chen
Department of Management Information Systems National Pingtung University of Science and Technology Pingtung, Taiwan 91207
国际会议
上海
英文
1-6
2009-08-02（万方平台首次上网日期，不代表论文的发表时间）