Decomposing Inventory Routing Problems with Approximate Value Functions

  title={Decomposing Inventory Routing Problems with Approximate Value Functions},
  author={Alejandro Toriello and George L. Nemhauser and Martin W. P. Savelsbergh},
We present a time decomposition for inventory routing problems. The methodology is based on valuing inventory with a concave piecewise linear function and then combining solutions to single-period subproblems using dynamic programming techniques. Computational experiments show that the resulting value function accurately captures the inventory’s value, and solving the multi-period problem as a sequence of single-period subproblems drastically decreases computational time without sacrificing… CONTINUE READING


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