This paper investigates the integrated optimization of production, distribution, and inventory decisions related to supplying multiple retailers from a central production facility. A single-item capacitated lot-sizing problem is defined for optimizing production decisions and inventory management. The optimization of daily distribution is modeled as a traveling salesman problem or a vehicle routing problem depending on the number of vehicles. A two-phase iterative method, from which several heuristics are derived, is proposed that iteratively focuses on lot-sizing and distribution decisions. Computational results show that our best heuristic outperforms existing methods. Link to the article
ABSI, N., ARCHETTI, C., DAUZÈRE-PÉRÈS, S. and FEILLET, D. (2015). A Two-Phase Iterative Heuristic Approach for the Production Routing Problem. Transportation Science, 49(4), pp. 784-795.