Performance Measurement for Inventory Routing

Jin-Hwa Song; Savelsbergh, Martin
February 2007
Transportation Science;Feb2007, Vol. 41 Issue 1, p44
Academic Journal
We develop technology to measure the effectiveness of distribution strategies for inventory routing. Popular, practical performance measures, such as volume delivered per mile, are effective in measuring relative performance but inadequate in measuring absolute performance. We develop a methodology that allows the computation of tight lower bounds on the total mileage required to satisfy customer demand over time. As a result, companies will be able to gain insight into the effectiveness of their distribution strategy.


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