Vendor managed inventory for environments with stochastic product usage |
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Authors: | Vera Hemmelmayr Karl F Doerner Richard F Hartl Martin WP Savelsbergh |
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Institution: | aDepartment of Business Administration, University of Vienna, Bruenner Strasse 72, 1210 Vienna, Austria;bSupply Chain and Logistics Institute, Georgia Institute of Technology, Atlanta, GA 30332-0205, USA |
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Abstract: | We develop technology to plan delivery routes for the supply of blood products to hospitals by a blood bank. The technology produces low cost, robust plans that hedge against the natural uncertainty associated with blood product usage at hospitals. The technology relies on sampling-based approaches involving integer programming and variable neighborhood search. An extensive computational study shows the efficacy of the two approaches and highlights the impact of product usage uncertainty on the resulting delivery plans. |
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Keywords: | Inventory routing Demand uncertainty Variable neighborhood search Sampling |
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