The Inventory Routing Problem with Demand Moves

Abstract In the Inventory Routing Problem, customer demand is satisfied from inventory which replenished with capacitated vehicles. The objective to minimize total routing and holding cost over a time horizon. If customers are located relatively close each other, one has opportunity satisfy of by stored at another nearby customer. optimization replenishments, this option can be included lower costs. This for example case ATMs in urban areas where an ATM-user that wants withdraw money could redirected ATM. To best our knowledge, possibility redirecting end-users new operations research literature not been implemented, but being considered, industry. We formulate Problem Demand Moves (partially) service depending on quantity distance. propose branch-price-and-cut solution approach evaluated problem instances literature. Cost improvements classical IRP up 10 % observed average savings around 3 .