Efficiently managing the flow of raw materials and semi-finished products from multiple suppliers to a manufacturing firm has been a critical challenge in supply networks. This problem, widely known as the Inbound Inventory Routing Problem (I-IRP), lies at the intersection of procurement planning, inventory control and vehicle routing. Unlike its more extensively studied counterpart in outbound logistics, the I-IRP addresses upstream coordination where manufacturers must make integrated inventory replenishment and transportation plans for supplier deliveries. Practical applications of I-IRPs are frequently evident in the automobile supply chain, standard shipping agreements such as Incoterm Ex Works and Factory Gate Pricing and India’s PM Gati-shakti Scheme. Traditional I-IRP models have largely focused on cost minimisation, often simplifying the problem by overlooking practical complexities such as supplier capacity restrictions, supplier coordination costs and material procurement costs. Moreover, while outbound IRPs typically account for variability in customer demand, inbound IRPs must consider uncertainties on both the supply and demand sides. This dual-sided uncertainty, coupled with coordination and procurement costs, underscores the need for more realistic and complex model formulations.

This study undertakes a systematic review of the I-IRP to consolidate fragmented knowledge, highlight methodological progress and provide a foundation for future research. A structured taxonomy is introduced to classify different network structures, problem assumptions and modelling and optimisation aspects, including mathematical formulation approaches, solution strategies and industrial applications. The study also highlights limitations of earlier I-IRP formulation approaches, including the consideration of restrictive assumptions that limit practical implementations of models. To address these shortcomings, a comprehensive framework is proposed that offers researchers and practitioners a stepwise guide for tackling real-world I-IRP challenges from model formulation to solution design and implementation. The study further discusses key modeling considerations such as the integration of procurement costs, supplier management overheads and various supplier-specific uncertainties and constraints, as well as the implications of ignoring them in practice. Comparative insights into solution methodologies are presented, with emphasis on the relative strengths of exact, heuristic and hybrid approaches.

Moreover, sensitivity analyses of reported models are examined to understand how changes in critical input parameters influence final outcomes. By consolidating theoretical developments with practical insights, this study advances the understanding of I-IRPs and underscores their growing relevance to sustainable manufacturing logistics. It also outlines promising avenues for research, emphasising the incorporation of digital technologies, uncertainty modelling, multi-dimensional supply risks and environmental and social issues.

Keywords

Classification Scheme, Decision-Making Framework, Inventory Routing Problem, Modelling and Solution Approaches and Supplier–Manufacturer Coordination.