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A network-based model for solving inventory routing problem in the asphalt industry: a case study

This paper proposes a network-based model, called the Time-Expanded Network Optimization Model, for solving a real-world Three-Tier Inventory Routing Problem combined with split delivery (Three-Tier SDIRP) in the asphalt industry. This network model, together with its associated elements, is constructed based on the information of a leading local asphalt company, located in Thailand. We show that the proposed methodology, with proper modifications, efficiently solves the problem and provides quite outstanding results. The numerical results notably indicate considerable improvement on both total operational costs and delivery quantity per travelled distance, a wildly used performance index for fluid transportation industries; approximately 32.2% and 47.5%, respectively.