An integrated inventory-routing system with limited vehicle capacity and storage constraint

This study is concerned with the inventory routing problem with limited vehicle capacity and storage constraint.. The inventory routing problem attempts to coordinate inventory management and vehicle routing in such a way that the cost is minimized over the long run.A mathematical model for coordinating inventory and vehicle routing decisions in an inbound commodity collection system composed of a central warehouse and suppliers is presented. A heuristic is developed due to difficulties on solving large problems with Lingo. Computational results which are obtained from the heuristic are compared with solution of Lingo for small instances. Computational tests are performed on a set of randomly generated problem instances. Computational results are obtained in short time for large and complex models with developed heuristic