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Fuzzy inventory-routing problem with priority customers

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Abstract

This research addresses the Inventory-Routing Problem (IRP) with priority customers under conditions of uncertainty. The problem involves devising a plan to supply a set of customers from a facility, establishing precedence rules, and making transportation and inventory management decisions while considering uncertainty in customer demand. Priority in deliveries is assigned to customers in the health sector in accordance with government regulations. Companies must uphold product quality for health sector customers while simultaneously aiming to minimize total costs. We propose a fuzzy mixed-integer linear programming model to solve the IRP with priority customers and uncertainty in demand rates, modeled using triangular fuzzy numbers. To convert the fuzzy linear programming model into a deterministic one, an ordering method for fuzzy numbers is applied. The model is implemented using CPLEX, and a set of benchmark instances is solved. The primary results indicate that prioritizing customers leads to an increase in total costs due to visiting these customers first on each route created. Additionally, routes without priority customers exhibit higher average vehicle capacity utilization. In most cases, the solutions obtained maintain quality within the specified time limits.

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Data availability

The datasets generated during the current study are based on a benchmark instances set from Archetti et al. (2007). In Sect. 5, the adjustments made are discussed.

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Funding

The authors declare that no funds, grants, or other supports were received during the preparation of this manuscript.

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Author notes

  1. Paulina A. Avila-Torres and Nancy M. Arratia-Martinez have contributed equally to this work.

Authors and Affiliations

  1. Department of Business Administration, Universidad de las Américas Puebla, Ex Hacienda Sta. Catarina Mártir, San Andrés Cholula, 72810, Puebla, Mexico

    Paulina A. Avila-Torres & Nancy M. Arratia-Martinez

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  1. Paulina A. Avila-Torres
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  2. Nancy M. Arratia-Martinez
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All authors have contributed equally to the study conception, design, analysis, and manuscript preparation. All authors read and approved the final manuscript.

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Correspondence to Paulina A. Avila-Torres.

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Avila-Torres, P.A., Arratia-Martinez, N.M. Fuzzy inventory-routing problem with priority customers. Soft Comput (2024). https://doi.org/10.1007/s00500-024-09721-z

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