Coordination of inventory and transportation managements in a two-level supply chain

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In this study, we consider a two-level supply chain in which a supplier serves a group of retailers in a given geographic region and determines a replenishment plan for each retailer by using the information on demands of final customers and inventory levels of the retailers. Deliveries are carried out by homogeneous vehicles with a finite capacity, and each vehicle can visit multiple retailers in a single trip. The problem considered here is to determine the replenishment quantities and timing for the retailers as well as the amount of products delivered to the retailers by each vehicle for the objective of minimizing the sum of the fixed vehicle cost, retailer-dependent material handling cost, and inventory holding cost of the whole supply chain. We develop heuristic algorithms by simultaneously considering inventory and transportation decisions. A series of computational tests are performed for evaluation of the performance of the heuristic algorithms, and results show that the heuristic algorithms give good solutions in a reasonably short computation time. (C) 2009 Elsevier B.V. All rights reserved.
Publisher
ELSEVIER SCIENCE BV
Issue Date
2010-01
Language
English
Article Type
Article
Keywords

OUTBOUND DISPATCH POLICIES; ROUTING PROBLEM; SHIPMENT CONSOLIDATION; DECOMPOSITION APPROACH; INTEGRATED INVENTORY; STOCK REPLENISHMENT; TOTAL-COST; VENDOR; DECISIONS; DELIVERIES

Citation

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, v.123, no.1, pp.137 - 145

ISSN
0925-5273
DOI
10.1016/j.ijpe.2009.07.008
URI
http://hdl.handle.net/10203/98744
Appears in Collection
IE-Journal Papers(저널논문)
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