Optimizing a Multi Period Deterministic Inventory Routing Problem in Agriculture Industries

• Published in: Paper Asia
• Main Author: Rahim M.K.I.A.; Harahap A.Z.M.K.; Bolaji B.H.; Ahmad A.N.A.
• Format: Article
• Language: English
• Published: SHPMedia Sdn Bhd 2023
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85185322389&doi=10.59953%2fcomp.by.paperasia.v39i5%28b%29.35&partnerID=40&md5=7813e4b827961d684cd9fd23b4f26651

This paper develops a solving model for multi-period deterministic inventory routing problem (MP-DIRP) in supply chain focus on agriculture industries. The issue is how to improve the perishable product delivery process from a distribution centre (DC) to a collection of customers over a planning horizon. This paper proposed a model to achieve optimization in terms of costs respectively. The transportation problem is solved by using a simulation technique and developed using an algebraic modelling language which is known as a mathematical programming language (AMPL) to find an optimal solution within the period. The route for a distribution centre (DC) is set up by a supplier depending on the number of products assigned to each customer, which contributes to determining the best inventory routing problem (IRP) for each period. As a result, by applying the transportation model developed in this study, it is expected that the industries can achieve optimization by minimizing their total inventory and transportation costs. © 2023, SHPMedia Sdn Bhd. All rights reserved.