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The Inventory – Routing Problem Considering Discount

Asvadi, Saman | 2015

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 47941 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Shavandi, Hassan
  7. Abstract:
  8. In this research, the inventory – routing problem considering discount is studied. The problem consists of a supplier and several retailers who form a network of demand and supply points. In this research, offering discount to retailers is considered as an appropriate policy for reducing total costs of the supply chain. The supplier can augment the utility of her trucks by offering discounts and incentives to the retailers and delivering them amounts of product beyond their economic ordering quantity. This way, the supplier can have full truck-loads instead of lower than full truck-loads while delivering the demands of the retailers. This, can result in a decrease in transportation costs and total costs of the supply chain. Although the supplier loses an amount of money for offering discounts and selling some products with a price less than their original price, the saving in transportation costs will exceed this loss of money and will bring the supplier some amounts of benefit. On the other hand, retailers will buy some of the products they need with discount. Hence, this policy is also beneficial for retailers. A mixed integer linear programming model is developed for this problem. Since commercial soft wares can not solve the problem in reasonable time, in large scales, a HEURISTIC algorithm is developed to solve the problems in large scales. The accuracy and speed of the proposed algorithm for solving large-scale problems is tested
  9. Keywords:
  10. Inventory-Routing Problem (IRP) ; Discount ; Mixed Integer Linear Programming ; Heuristic Algorithm

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