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EVENTS

RESEARCH

THE FIXED-PARTITION POLICY INVENTORY ROUTING PROBLEM

[ARTICLE] This paper introduces the fixed-partition policy inventory routing problem (FPP-IRP), which partitions customers into fixed clusters for distribution, offering advantages such as reduced operational complexity, improved system robustness, and consistency in distribution.

by Claudia Archetti (ESSEC Business School), Ali Diabat, Waleed Najy

In this paper, we formally introduce a variant of the inventory routing problem (IRP) that we call the fixed-partition policy IRP (FPP-IRP). In contrast to the classical IRP in which delivery routes are arbitrary, the FPP-IRP partitions customers into mutually exclusive clusters that are fixed throughout the optimization horizon, and distribution is performed separately for each cluster. By restricting the flexibility inherent in the classical IRP, the FPP-IRP attains many potential advantages. First, partitioning reduces the operational complexity of the system and allows a simpler organization of the distribution service. Second, it improves the robustness of the system by isolating disruptions to affected clusters. Third, it can fit the needs and requirements of specific applications in which consistency in the distribution policy, such as familiarity between customers and drivers and route invariance, is required. We present two fixed-partition policies for the IRP together with mathematical formulations and valid inequalities. We also present a worst-case analysis on the performance of these policies. Extensive computational results are presented to show the behavior of these policies and glean insights into their potential benefits.

[Please read the research paper here]

Research list
MULTIVARIATE VOLATILITY FORECASTS FOR STOCK MARKET INDICES

MULTIVARIATE VOLATILITY FORECASTS FOR STOCK MARKET INDICES

[ARTICLE] This study forecasts realized variance for major international stock market indices, incorporating jump, continuous, and option-implied variance components, using ...
DYNAMICS OF VARIANCE RISK PREMIA: A NEW MODEL FOR DISENTANGLING THE PRICE OF RISK

DYNAMICS OF VARIANCE RISK PREMIA: A NEW MODEL FOR DISENTANGLING THE PRICE OF RISK

[ARTICLE] This paper presents a dynamic model for the variance risk premium that separates the continuous component from jump impacts, ...
MINIMUM COST NETWORK DESIGN IN STRATEGIC ALLIANCES

MINIMUM COST NETWORK DESIGN IN STRATEGIC ALLIANCES

[ARTICLE] This paper investigates the impact of transaction costs on the viability of strategic alliances in service network design, highlighting ...
PROBABILISTIC FORECASTING OF BUBBLES AND FLASH CRASHES

PROBABILISTIC FORECASTING OF BUBBLES AND FLASH CRASHES

[ARTICLE] This paper proposes a near explosive random coefficient autoregressive model (NERC) to predict probabilities of bubbles and crashes in ...
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