Highlights Districting consideration is successfully integrated with the multi-customer JRP. This study is vital to a company outsourcing logistics to a 3PL service provider. Our numerical experiments are based on a real-life example in a bank system. An effective GA-based algorithm is proposed for solving the problem. Managerial insights provide baseline information before contract negotiation.
Abstract This paper studies a multi-customer joint replenishment problem with districting consideration (MJRPDC) which is of particular importance to a company that outsources its transportation and delivery operations to a third-party logistics (3PL) service provider. To solve the problem, we first propose an innovative search algorithm for solving the traditional multi-customer joint replenishment problem in a given zone. Then we design a GA-based framework to handle the corresponding districting problem based on the performance of each district evaluated by using the proposed search algorithm. The proposed methodologies are demonstrated by using an example of solving MJRPDC for a bank.
An integrated algorithm for solving multi-customer joint replenishment problem with districting consideration
2020-02-22
Article (Journal)
Electronic Resource
English
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