Track: Supply Chain
Abstract
This study investigates an extended Location Routing Inventory problem model of perishable product. The proposed model consists of two phases. In the first phase, the location routing problem is modelled with stochastic customer demands and travel time, and then fixed facility and transportation costs are derived. In the second phase, a queue system is used to model the inventory control problem based on selected locations and routes. Reneging and balking are assumed in the second phase, and holding, shortage, product expiration, customer waiting times, and customer loss costs are calculated. An integral model is proposed based on these two phases. Simulated annealing heuristic is applied in order to solve the model, and one numerical examples are presented.