Consistent Stochastic Inventory Routing Management (COSIMA)

This project integrates two fundamental logistical aspects that are typically investigated independently or sequentially: inventory management and transportation routing optimisation. We extend the existing knowledge with regard to essential real-world characteristics of such problems and develop new approaches for the integration of these two aspects. Stochastic demands at the retailers are typically non-stationary and correlated, emergency shipments are allowed and service level requirements have to be met. Moreover, we incorporate consistency, i.e. delivery at a certain retailer should always take place within the same time interval. This leads to a two-stage multi-echelon inventory problem with routing, stochastic lead times and non-equidistant review periods.