A branch-and-cut algorithm for a multi-item inventory distribution problem

Abstract

This paper considers a multi-item inventory distribution problem motivated by a practical case occurring in the logistic operations of an hospital. There, a single warehouse supplies several nursing wards. The goal is to define a weekly distribution plan of medical products that minimizes the visits to wards, while respecting inventory capacities and safety stock levels. A mathematical formulation is introduced and several improvements such as tightening constraints, valid inequalities and an extended reformulation are discussed. In order to deal with real size instances, an hybrid heuristic based on mathematical models is introduced and the improvements are discussed. A branch-and-cut algorithm using all the discussed improvements is proposed. Finally, a computational experimentation is reported to show the relevance of the model improvements and the quality of the heuristic scheme. © Springer International Publishing AG 2016.