Extensions

Production-IRP

In this case, the decisions related to the production of the products are integrated with inventory and routing management.

The problem is to determine, day by day:

• the quantity to produce

• the quantity to deliver to each customer

• how to organize the routes

in order to minimize the sum of fixed and variable production costs, inventory costs and routing costs.

Stochastic IRP

In this case, the demand of each product is not given, but it is defined on the basis of a probability distribution.

The problem is to determine, day by day:

• the quantity to deliver to each customer

• how to organize the routes

in order to minimize the expected cost, given by the sum of inventory and routing costs.