A variable neighborhood search simheuristic for the multiperiod inventory routing problem with stochastic demands

The inventory routing problem (IRP) combines inventory management and delivery route-planning decisions. This work presents a simheuristic approach that integrates Monte Carlo simulation within a variable neighborhood search (VNS) framework to solve the multiperiod IRP with stochastic customer demands. In this realistic variant of the problem, our goal is to establish the optimal refill policies for each customer–period combination, that is, those individual refill policies that minimize the total expected cost over the periods. This cost is the aggregation of both expected inventory and routing costs. Our simheuristic algorithm allows to consider the inventory changes between periods generated by the realization of the random demands in each period, which have an impact on the quantities to be delivered in the next period and, therefore, on the associated routing plans. A range of computational experiments are carried out in order to illustrate the potential of our simulation–optimization approach.