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Under recent global competition and short product life cycle, we need to undertake agile decision making in every manufacturing process. With this point of view, this study provides a practical hybrid meta-heuristic method for a three echelon logistic network optimization. It supports decision making at a tactical and operational level associated with inventory management for daily planning. That includes a new idea to solve practical multi-depot VRP efficiently. Its solution procedure is developed by means of two modified heuristic methods known as the saving method and tabu search togather with the graph algorithm of minimum cost flow problem. The resulting procedure is expected to play a role of optimization engine in the total system incorporated with information system for inventory management. Moreover, to enhance usability of the method, visualization of result is also realized by virtue of Google map API. Numerical experiments are carried out to validate effectiveness of the proposed approach.

Daily Planning for Three Echelon Logistics Considering Inventory Conditions