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Title: Lagrangian relaxation bounds for a production-inventory-routing problem
Author: Agra, Agostinho
Cerveira, Adelaide
Requejo, Cristina
Keywords: Inventory routing
Lagrangian relaxation
Lagrangian decomposition
Lower bounds
Issue Date: 2016
Publisher: Springer International Publishing
Abstract: We consider a single item Production-Inventory-Routing problem with a single producer/supplier and multiple retailers. Inventory management constraints are considered both at the producer and at the retailers, following a vendor managed inventory approach, where the supplier monitors the inventory at retailers and decides on the replenishment policy for each retailer. We assume a constant production capacity. Based on the mathematical formulation we discuss a classical Lagrangian relaxation which allows to decompose the problem into four subproblems, and a new Lagrangian decomposition which decomposes the problem into just a production-inventory subproblem and a routing subproblem. The new decomposition is enhanced with valid inequalities. A computational study is reported to compare the bounds from the two approaches.
DOI: 10.1007/978-3-319-51469-7_20
ISBN: 978-3-319-51468-0
ISSN: 0302-9743
Appears in Collections:CIDMA - Capítulo de livro
OGTCG - Capítulo de livro

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