A R E V I E W O F T H E S T U D I E S O F P R O D U C T I O N I N V E N T O R Y R O U T I N G P R O B L E M C O N S I D E R I N G M O D E L I N G A N D S O L U T I O N T E C H N I Q U E S
Author(s):
Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
The necessity for integration and coordination of various components in a Supply Chain Management has been recognized as an important factor for most companies to remain competitive. Most of the activities in the supply chain chain management are inter-related and changes in one part of the supply chain management are likely to affect the performance of other processes. Production, inventory management, and transportation are three of the key logistical drivers of the supply chain management. Other components include, location, marketing, and purchasing. Production inventory routing problem combines two classic well-known problems, namely inventory routing problem and lot-sizing problem. The problem is solved in an attempt to jointly optimize Production, inventory, and routing decisions, and is thus a generalization of the inventory routing problem. The implementation of production inventory routing problem is critical, especially in a Vendor Managed Inventory (VMI) replenishment system, where the supplier or manufacturer observes and controls the inventory levels of its customers or retailers. One of the most important benefits of VMI is that it permits a more uniform utilization of transportation resources. This leads to a higher level of efficiency and a much lower distribution cost that often constitutes the largest part of the overall cost. Customers benefit from higher service levels and greater product availability due to the fact that vendors can use the existing inventory data at their customer sites to more accurately predict future demand. Although the Production inventory routing problem has a complicated structure, a growing interest in this problem in recent decade has drawn attentions theoretically to the problem. This article provides a comprehensive review of the existing literature and the associated classifications. The article also presents one of the models of the problem. The proposed model consists of a two- surface supply chain which has a production site and multiple customers with finite demand. The problem is presented in multiple products and inventory shortages are not permitted. Finally, we point out interesting research directions for further developments in production inventory routing problem.
Keywords:
Language:
Persian
Published:
Industrial Engineering & Management Sharif, Volume:33 Issue: 2, 2017
Pages:
65 to 77
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