An Integrated Production Inventory Routing Problem for Multi Perishable Products with Fuzzy Demands and Time Windows

Abstract

This paper presents an integrated production inventory routing problem with a mixed integer linear programming (MILP) model that remarks a multi-product, multi-period with heterogeneous fleets and time windows in a distribution network. In particular, this research differs because of the limited lifetime of products, demand uncertainty and integration of production-inventory-routing. Two fuzzy approaches define the uncertainty in the demand of retailers. The objective of the proposed model is to maximize the total profit, which equals the selling revenue subtract the aggregation of the holding, production, transportation and driver wage costs. Randomly generated instances are used to validate the effectiveness and the intricacy of the model, which is solved by the linear programming solver CPLEX.