A Production Inventory Routing Planning for Perishable Food with Quality Consideration

Abstract : We formulate the production inventory routing planning with an integrated mixed integer linear programming (MILP) model where the food quality level is explicitly traced throughout the supply chain. The objective of the proposed model is to maximize the total profit, which equals the selling revenue minus the summation of the production, inventory and transportation cost. We then use illustrative examples to show the effectiveness of the model and to investigate the impact of perishability. Analyses based on the computational results of a set of randomly generated instances are given.