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- W2909238064 abstract "The inventory routing problem (IRP) deals with the transportation of one product from a producer to multiple consumers, which have given demands and inventory capacities, over a discrete time horizon. The traditional goal of the IRP is to minimize the combination of inventory and transportation costs, while avoiding stock outs at customers. This paper proposes two variations of the IRP with profit maximization. First, when the market situation allows prices to be adjusted, the problem involves finding an optimal balance of volume and margin according to a demand function. Second, when prices are fixed, unit production costs depend on the production volume, which can be adjusted to maximize the profit. Both variations lead to non-linear models, which are linearized and then tested on a selection of standard benchmark instances. Computational results show that considering profit maximization instead of cost minimization leads to different decisions, generating a larger revenue and profit." @default.
- W2909238064 created "2019-01-25" @default.
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- W2909238064 date "2018-12-01" @default.
- W2909238064 modified "2023-09-23" @default.
- W2909238064 title "Profit Maximization in Inventory Routing Problems" @default.
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- W2909238064 doi "https://doi.org/10.1109/ieem.2018.8607713" @default.
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