An Enhanced Solution Strategy for Multi-period Multi-component Product Inventory Routing Problem Considering Supply Failure Risks

Abstract

This paper proposes an enhanced solution strategy for multi-period multi-component product inventory routing problem, considering multiple economic and environmental goals. In the problem, the demand of the assembly plant is satisfied by a set of geographically dispersed unique suppliers. Various practical constraints of the upstream supply network, such as supply capacity, supplier management cost, ordering cost, and supply failure risk are considered. A full factorial designed simulation experiment reveals price of component, price of fuel, and supply capacity variations significantly impact the goals.