lynx   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v325y2025i1p81-99.html
   My bibliography  Save this article

Cyclic stochastic two-echelon inventory routing for an application in medical supply

Author

Listed:
  • Rave, Alexander
  • Fontaine, Pirmin
  • Kuhn, Heinrich
Abstract
Drug availability in clinics is essential for patient services, whose demand for medication is uncertain. Thus, clinics must have a variety of drugs available, leading to high inventory holding costs. In Germany, it is common for a larger central clinic to take over the procurement of drugs and distribute them to smaller surrounding clinics, which results in a two-echelon network structure. The clinics, however, operate according to their inventory policy as they plan independently. Additionally, the inventory policies include instant replenishment orders to avoid shortages, which can be executed by various vehicles, such as vans or aerial drones, because the orders only involve a few medications.

Suggested Citation

  • Rave, Alexander & Fontaine, Pirmin & Kuhn, Heinrich, 2025. "Cyclic stochastic two-echelon inventory routing for an application in medical supply," European Journal of Operational Research, Elsevier, vol. 325(1), pages 81-99.
    • Handle: RePEc:eee:ejores:v:325:y:2025:i:1:p:81-99
    DOI: 10.1016/j.ejor.2025.02.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221725001559
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2025.02.032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ann Melissa Campbell & Martin W. P. Savelsbergh, 2004. "A Decomposition Approach for the Inventory-Routing Problem," Transportation Science, INFORMS, vol. 38(4), pages 488-502, November.
    2. Broekmeulen, Rob A.C.M. & Sternbeck, Michael G. & van Donselaar, Karel H. & Kuhn, Heinrich, 2017. "Decision support for selecting the optimal product unpacking location in a retail supply chain," European Journal of Operational Research, Elsevier, vol. 259(1), pages 84-99.
    3. Stefan Ropke & David Pisinger, 2006. "An Adaptive Large Neighborhood Search Heuristic for the Pickup and Delivery Problem with Time Windows," Transportation Science, INFORMS, vol. 40(4), pages 455-472, November.
    4. Arslan, Okan, 2021. "The location-or-routing problem," Transportation Research Part B: Methodological, Elsevier, vol. 147(C), pages 1-21.
    5. Nicholson, Lawrence & Vakharia, Asoo J. & Selcuk Erenguc, S., 2004. "Outsourcing inventory management decisions in healthcare: Models and application," European Journal of Operational Research, Elsevier, vol. 154(1), pages 271-290, April.
    6. Zheng, Xiaojin & Yin, Meixia & Zhang, Yanxia, 2019. "Integrated optimization of location, inventory and routing in supply chain network design," Transportation Research Part B: Methodological, Elsevier, vol. 121(C), pages 1-20.
    7. Volland, Jonas & Fügener, Andreas & Schoenfelder, Jan & Brunner, Jens O., 2017. "Material logistics in hospitals: A literature review," Omega, Elsevier, vol. 69(C), pages 82-101.
    8. Niakan, Farzad & Rahimi, Mohammad, 2015. "A multi-objective healthcare inventory routing problem; a fuzzy possibilistic approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 74-94.
    9. Claudia Archetti & Luca Bertazzi & Gilbert Laporte & Maria Grazia Speranza, 2007. "A Branch-and-Cut Algorithm for a Vendor-Managed Inventory-Routing Problem," Transportation Science, INFORMS, vol. 41(3), pages 382-391, August.
    10. Johansson, Lina & Sonntag, Danja R. & Marklund, Johan & Kiesmüller, Gudrun P., 2020. "Controlling distribution inventory systems with shipment consolidation and compound Poisson demand," European Journal of Operational Research, Elsevier, vol. 280(1), pages 90-101.
    11. Rahimi, Mohammad & Baboli, Armand & Rekik, Yacine, 2017. "Multi-objective inventory routing problem: A stochastic model to consider profit, service level and green criteria," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 59-83.
    12. Thomas Wensing & Michael G. Sternbeck & Heinrich Kuhn, 2018. "Optimizing case-pack sizes in the bricks-and-mortar retail trade," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(4), pages 913-944, October.
    13. Ehsan Yadollahi & El‐Houssaine Aghezzaf & Birger Raa, 2017. "Managing inventory and service levels in a safety stock‐based inventory routing system with stochastic retailer demands," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 33(4), pages 369-381, August.
    14. James K. Higginson & James H. Bookbinder, 1995. "Markovian Decision Processes in Shipment Consolidation," Transportation Science, INFORMS, vol. 29(3), pages 242-255, August.
    15. Mohammad Rahimi & Armand Baboli & Yacine Rekik, 2017. "Multi-objective inventory routing problem : A stochastic model to consider profit, service level and green criteria," Post-Print hal-02311993, HAL.
    16. Zheng Cui & Daniel Zhuoyu Long & Jin Qi & Lianmin Zhang, 2023. "The Inventory Routing Problem Under Uncertainty," Operations Research, INFORMS, vol. 71(1), pages 378-395, January.
    17. Frank, Markus & Ostermeier, Manuel & Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich, 2021. "Optimizing routing and delivery patterns with multi-compartment vehicles," European Journal of Operational Research, Elsevier, vol. 293(2), pages 495-510.
    18. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    19. Aksen, Deniz & Kaya, Onur & Sibel Salman, F. & Tüncel, Özge, 2014. "An adaptive large neighborhood search algorithm for a selective and periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 239(2), pages 413-426.
    20. Ehsan Yadollahi & El‐Houssaine Aghezzaf & Birger Raa, 2017. "Managing inventory and service levels in a safety stock‐based inventory routing system with stochastic retailer demands," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 33(5), pages 555-555, September.
    21. Rave, Alexander & Fontaine, Pirmin & Kuhn, Heinrich, 2023. "Drone location and vehicle fleet planning with trucks and aerial drones," European Journal of Operational Research, Elsevier, vol. 308(1), pages 113-130.
    22. Archetti, Claudia & Ljubić, Ivana, 2022. "Comparison of formulations for the Inventory Routing Problem," European Journal of Operational Research, Elsevier, vol. 303(3), pages 997-1008.
    23. Walter J. Bell & Louis M. Dalberto & Marshall L. Fisher & Arnold J. Greenfield & R. Jaikumar & Pradeep Kedia & Robert G. Mack & Paul J. Prutzman, 1983. "Improving the Distribution of Industrial Gases with an On-Line Computerized Routing and Scheduling Optimizer," Interfaces, INFORMS, vol. 13(6), pages 4-23, December.
    24. Olof Stenius & Ayşe Gönül Karaarslan & Johan Marklund & A. G. de Kok, 2016. "Exact Analysis of Divergent Inventory Systems with Time-Based Shipment Consolidation and Compound Poisson Demand," Operations Research, INFORMS, vol. 64(4), pages 906-921, August.
    25. Holzapfel, Andreas & Hübner, Alexander & Kuhn, Heinrich & Sternbeck, Michael G., 2016. "Delivery pattern and transportation planning in grocery retailing," European Journal of Operational Research, Elsevier, vol. 252(1), pages 54-68.
    26. Leandro C. Coelho & Jean-François Cordeau & Gilbert Laporte, 2014. "Thirty Years of Inventory Routing," Transportation Science, INFORMS, vol. 48(1), pages 1-19, February.
    27. Raa, Birger & Aouam, Tarik, 2023. "A shortfall modelling-based solution approach for stochastic cyclic inventory routing," European Journal of Operational Research, Elsevier, vol. 305(2), pages 674-684.
    28. Çetinkaya, SIla & Bookbinder, James H., 2003. "Stochastic models for the dispatch of consolidated shipments," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 747-768, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. A. Mor & M. G. Speranza, 2020. "Vehicle routing problems over time: a survey," 4OR, Springer, vol. 18(2), pages 129-149, June.
    2. Song, Ruidian & Zhao, Lei & Van Woensel, Tom & Fransoo, Jan C., 2019. "Coordinated delivery in urban retail," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 122-148.
    3. A. Mor & M. G. Speranza, 2022. "Vehicle routing problems over time: a survey," Annals of Operations Research, Springer, vol. 314(1), pages 255-275, July.
    4. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    5. Fokkema, Jan Eise & Land, Martin J. & Coelho, Leandro C. & Wortmann, Hans & Huitema, George B., 2020. "A continuous-time supply-driven inventory-constrained routing problem," Omega, Elsevier, vol. 92(C).
    6. Cárdenas-Barrón, Leopoldo Eduardo & González-Velarde, José Luis & Treviño-Garza, Gerardo & Garza-Nuñez, Dagoberto, 2019. "Heuristic algorithm based on reduce and optimize approach for a selective and periodic inventory routing problem in a waste vegetable oil collection environment," International Journal of Production Economics, Elsevier, vol. 211(C), pages 44-59.
    7. Lei, Jieyu & Che, Ada & Van Woensel, Tom, 2024. "Collection-disassembly-delivery problem of disassembly centers in a reverse logistics network," European Journal of Operational Research, Elsevier, vol. 313(2), pages 478-493.
    8. Markov, Iliya & Bierlaire, Michel & Cordeau, Jean-François & Maknoon, Yousef & Varone, Sacha, 2018. "A unified framework for rich routing problems with stochastic demands," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 213-240.
    9. Ralfs, Jana & Pham, Dai T. & Kiesmüller, Gudrun P., 2025. "Optimal outbound shipment policy for an inventory system with advance demand information," European Journal of Operational Research, Elsevier, vol. 324(1), pages 92-103.
    10. Liu, Wenqian & Ke, Ginger Y. & Chen, Jian & Zhang, Lianmin, 2020. "Scheduling the distribution of blood products: A vendor-managed inventory routing approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    11. Touzout, Faycal A. & Ladier, Anne-Laure & Hadj-Hamou, Khaled, 2022. "An assign-and-route matheuristic for the time-dependent inventory routing problem," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1081-1097.
    12. Zajac, Sandra & Huber, Sandra, 2021. "Objectives and methods in multi-objective routing problems: a survey and classification scheme," European Journal of Operational Research, Elsevier, vol. 290(1), pages 1-25.
    13. Feng, Yuqiang & Che, Ada & Tian, Na, 2024. "Robust inventory routing problem under uncertain demand and risk-averse criterion," Omega, Elsevier, vol. 127(C).
    14. Manousakis, Eleftherios & Repoussis, Panagiotis & Zachariadis, Emmanouil & Tarantilis, Christos, 2021. "Improved branch-and-cut for the Inventory Routing Problem based on a two-commodity flow formulation," European Journal of Operational Research, Elsevier, vol. 290(3), pages 870-885.
    15. Mirzapour Al-e-hashem, Seyed M.J. & Rekik, Yacine & Mohammadi Hoseinhajlou, Ebrahim, 2019. "A hybrid L-shaped method to solve a bi-objective stochastic transshipment-enabled inventory routing problem," International Journal of Production Economics, Elsevier, vol. 209(C), pages 381-398.
    16. Hadi Jahangir & Mohammad Mohammadi & Seyed Hamid Reza Pasandideh & Neda Zendehdel Nobari, 2019. "Comparing performance of genetic and discrete invasive weed optimization algorithms for solving the inventory routing problem with an incremental delivery," Journal of Intelligent Manufacturing, Springer, vol. 30(6), pages 2327-2353, August.
    17. Liu, Ming & Liu, Xin & Chu, Feng & Zheng, Feifeng & Chu, Chengbin, 2019. "Distributionally robust inventory routing problem to maximize the service level under limited budget," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 190-211.
    18. Alarcon Ortega, Emilio J. & Schilde, Michael & Doerner, Karl F., 2020. "Matheuristic search techniques for the consistent inventory routing problem with time windows and split deliveries," Operations Research Perspectives, Elsevier, vol. 7(C).
    19. Aksen, Deniz & Kaya, Onur & Sibel Salman, F. & Tüncel, Özge, 2014. "An adaptive large neighborhood search algorithm for a selective and periodic inventory routing problem," European Journal of Operational Research, Elsevier, vol. 239(2), pages 413-426.
    20. Mehmet Onur Olgun & Erdal Aydemir, 2021. "A new cooperative depot sharing approach for inventory routing problem," Annals of Operations Research, Springer, vol. 307(1), pages 417-441, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:325:y:2025:i:1:p:81-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    Лучший частный хостинг