A Multi-Objective Inventory Routing Framework for Rural Freight Logistics

Abstract

Rural freight mobility and logistics face persistent challenges, including inadequate road infrastructure, high transportation costs, safety risks, tolls at link access points, and dispersed demand. Traditional inventory routing models often fail to address these complexities, especially in rural contexts where alternative routing options and integrated in-haul/back-haul operations are essential for improving efficiency and reducing empty miles. This study proposes a bi-objective mathematical model for the inventory routing problem in rural logistics, incorporating multiple routing attributes (transportation costs, risks, link-access tolls, and distances) and inventory dynamics (integrated in-haul and back-haul visits). The model aims to minimize total logistics costs and accident risk while balancing operational expenses and safety considerations. Risk estimation is derived from crash data along rural road links connecting distribution nodes. A real-world case study involving Walmart distribution centers in Macclenny, Baker County, Florida, and several rural Supercenters is conducted to validate the model. A modified Non-Dominated Sorting Genetic Algorithm II (NSGA-II) is developed and compared with CPLEX for solution efficiency across small and large-scale problem instances. Results indicate that the proposed approach outperforms classical methods, improves routing decisions in rural logistics systems, and achieves cost savings of up to 17% for the evaluated objectives, emphasizing the importance of using multi-attribute, multi-route network structures in rural logistics optimization.