Vendor managed inventory for environments with stochastic product usage

Vera Hemmelmayr, Karl F. Doerner, Richard F. Hartl, Martin W.P. Savelsbergh

Publication: Scientific journalJournal articlepeer-review


We develop technology to plan delivery routes for the supply of blood products to hospitals by a blood bank. The technology produces low cost, robust plans that hedge against the natural uncertainty associated with blood product usage at hospitals. The technology relies on sampling-based approaches involving integer programming and variable neighborhood search. An extensive computational study shows the efficacy of the two approaches and highlights the impact of product usage uncertainty on the resulting delivery plans.
Original languageEnglish
Pages (from-to)686 - 695
JournalEuropean Journal of Operational Research (EJOR)
Issue number3
Publication statusPublished - 2010

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