@article{40ec4911bc3d46f39718aebd8ec4836e,

title = "The general multi-retailer EOQ problem with vehicle routing costs",

abstract = "We study the distribution problem of a single commodity from one warehouse to n geographically dispersed retailers by a fleet of capacitated vehicles. Each of the retailers faces a continuous constant and deterministic demand rate over the infinite horizon. In addition, each of the retailers is characterized by its own inventory holding cost rate. The objective a routing and replenishment strategy which minimizes the long-run average transportation and holding cost. We restrict ourselves to a class of strategies which partitions the overall region into subregions. A retailer can be assinged to several subregions: each subregions is responsible for a certain fraction of the sales of each of its retailers. We first show that the optimal solution can be bounded from below by a special partitioning problem whose solution can be given in a closed form. We then present a simple heuristic which is shown to converge to the lower-bound almost surely under mild probabilistic conditions, when the number of retailers is increased to infinity.",

keywords = "Distribution, Heuristics, Inventory, Partitioning problems, Routing problems",

author = "Shoshana Anily",

note = "Funding Information: * This research has been partially supported by 1) Natural Science Engineering Research Council Canada (NSERCC) Grant No. A4802; 2) Israel Institute of Business Research. Correspondence to: Dr. S. Anily, Faculty of Management, Tel Aviv University, Tel Aviv 69978, Israel.",

year = "1994",

month = dec,

day = "22",

doi = "10.1016/0377-2217(94)90059-0",

language = "אנגלית",

volume = "79",

pages = "451--473",

journal = "European Journal of Operational Research",

issn = "0377-2217",

publisher = "Elsevier",

number = "3",

}