Inventory Routing and Pricing Problem in a Supply Chain Network Design by a Heuristic Method

Authors

J. Anix Joel Singh, Anna University, Chennai, Tamil Nadu, IndiaFollow
M. Saravanan, Department in Mechanical Engineering, SSM Institute of Engineering and Technology, Dindigul, Tamil Nadu, IndiaFollow

Author Country (or Countries)

India

Abstract

In this research work an analytical model has been proposed, for finding new distribution passage from the suppliers to the geographically scattered dealers and to deal with the pricing problem. Since the result for this model is a non-polynomial problem, tabu search that uses various surrounding approaches has been employed to provide gratifying results. Rate fixing and request claiming are neglected and assumed in several inventory routing problem investigation. To obtain maximum interest in the supply chain network, the agreement in rate fixing have to be good since it affects the demand decision and hence the inventory and routing decisions. The suggested heuristic method was distinguished from two other existing methods of inventory routing and pricing problem and it has been found to be better than the other two methods while considering the average profit.

Digital Object Identifier (DOI)

http://dx.doi.org/10.18576/amis/110215

Recommended Citation

Anix Joel Singh, J. and Saravanan, M. (2017) "Inventory Routing and Pricing Problem in a Supply Chain Network Design by a Heuristic Method," Applied Mathematics & Information Sciences: Vol. 11: Iss. 2, Article 15.
DOI: http://dx.doi.org/10.18576/amis/110215
Available at: https://digitalcommons.aaru.edu.jo/amis/vol11/iss2/15