A Single Period Deterministic Inventory Routing Model for Solving Problems in the Agriculture Industry

This paper constructs the problem of dealing inventory and the transportation in the supply chain in the agriculture industry, also to investigate the capabilities of the distribution process of perishable products (vegetables) from the distribution centre (DC) to a set of customers to minimize the total operational cost. This research proposed an optimisation model to present the actual problem that happened in a real-life situation. The simulation of the transportation problem was developed using an algebraic modelling language which is called a mathematical programming language (AMPL) to determine an optimal solution. Thus, by setting the delivery routes for DC, based on the number of products that have been set for each customer, it helps to find an optimal inventory routing problem (IRP). As a result, an optimization model developed, it is predicted that agriculture firms can achieve an optimal solution by reducing their operational cost, especially on the inventory and transportation cost.