Logistics in real-time: Inventory-routing operations under stochastic demand

Ricardo Giesen*, Hani S. Mahmassani, Patrick Jaillet

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter

3 Scopus citations


Summary: This chapter studies real-time distribution strategies and their associated benefits for a two-level distribution system, from one depot to N retailers, wherein vehicle delivery routes can be updated using real-time information about current inventory levels and vehicle status. Three rolling horizon approaches are proposed in which plans are updated using a mathematical programming formulation. The proposed re-planning strategies are compared against two benchmark policies using a general discrete-event simulation framework. Proposed replanning strategies are shown to systematically outperform the two benchmark policies.

Original languageEnglish (US)
Title of host publicationInnovations in Distribution Logistics
Editorsjnunen@rsm.nl van Nunen, M. Grazia Speranza, Luca Bertazzi
Number of pages40
StatePublished - 2010

Publication series

NameLecture Notes in Economics and Mathematical Systems
ISSN (Print)0075-8442


  • Commercial vehicle operations (CVO)
  • Dynamic fleet management
  • Freight transportation
  • Intelligent transportation systems (ITS)
  • Inventory Routing problem
  • Logistics
  • On-line problems
  • Online vehicle routing problem
  • Real-time information
  • Vendor managed inventory

ASJC Scopus subject areas

  • Mathematics (miscellaneous)
  • Economics, Econometrics and Finance (miscellaneous)


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