1 Presentation

• 
  09:00 AM - 10:00 AM

  Integrated Production and Transportation Planning

  • Jean-François Cordeau, presenter, HEC Montréal, GERAD, CIRRELT

  Production planning, inventory management and vehicle routing are three cornerstones of supply chain management. In both the scientific literature and the industry, there is a growing interest in models and algorithms that integrate these three components with the aim of reducing overall logistics costs. This leads to challenging combinatorial optimization problems that combine classical lot sizing and vehicle routing structures. We present a simple and flexible heuristic framework that yields high quality solutions to some of the most important variants, such as the inventory-routing problem and the production-routing problem. We also explain how Benders decomposition can successfully solve the production-routing problem under demand uncertainty. Finally, we describe some recent industrial applications.