A Novel Hybrid Artificial Intelligence Based Methodology for the Inventory Routing Problem

Abstract

In this paper, a new hybrid method including simulation optimization and artificial intelligence based simulation is created to solve the inventory routing problem (IRP) in which three different routing strategies are evaluated for uneven demand patterns including intermittent, erratic, and lumpy demand. The proposed method includes two phases. In the first phase, a nondominated sorting genetic algorithm II based simulation is employed to perform a multi-objective search for the IRP where the objectives of the method are total supply chain cost minimization and average service level maximization. In the second phase, artificial neural network based simulation is used to adjust the reorder point and order-up-to-level by forecasting the customer demand at each replenishment time. The results of the study demonstrated that the average service level is at least 98.54% in the supply chain. From this, it can be concluded that the proposed method can provide a tremendous opportunity to improve the average service level under uncertain environments. In addition, it is determined that different routing strategies can be selected for different demand patterns according to the considered performance measures.

DA-OCBA: Distributed Asynchronous Optimal Computing Budget Allocation Algorithm of Simulation Optimization Using Cloud Computing

“…In a classical (s, S) inventory problem [46,47], the level of inventory of a discrete unit is periodically reviewed. If the inventory position (units in inventory plus units on order minus units backordered) at a review is below s units, then an order is placed to bring the inventory position up to S units; otherwise, no order is placed.…”

Oportunidades para la transformación digital de la cadena de suministro del sector bananero basado en software con inteligencia artificial

“…En las cadenas de suministro se viene trabajando fuertemente con los AG en el área de problemas de ruteo; tal es el caso de las investigaciones [27,28,29] que proponen sistemas de optimización de rutas internas para la ubicación y carga de los productos en almacenados en bodegas, permitiendo utilizar distintos tipos de vehículos de acuerdo al contexto, que conllevan a la reducción de costos y mejoramiento del servicio. Así mismo se han hecho propuestas para mejorar la entrega y recogida de productos, optimizando la asignación de vehículos respeto al lugar de residencia de los clientes [30,31,32] y la programación de los despachos de acuerdo a las órdenes de pedido [33,34,35].…”

A Framework for Intelligent Inventory Prediction in Small and Medium- Scale Enterprise

“…In Boru et al (2019) a novel hybrid methodology based on artificial intelligence was proposed for inventory routing problem. Motivation for the research arose from the fact that with expanding customer expectations and growing markets in the competitive business world, some businesses are bound to collapse.…”