Advanced Search
MyIDEAS: Login

Multi-item dynamic lot-sizing with delayed transportation policy

Contents:

Author Info

  • Sancak, Emre
  • Salman, F. Sibel
Registered author(s):

    Abstract

    We optimize ordering and inbound shipment decisions for a manufacturer that sources multiple items from a single supplier. The objective is to satisfy the requirements in the production plan with minimum transportation and inventory holding costs over a multi-period planning horizon. Transportation costs are charged to the manufacturer on a per truck shipment basis. We investigate the option of delaying a less-than-full truckload shipment to the next period, by utilizing the safety stocks as needed. We analyze the impact of delaying shipments on both cost and service levels in stochastic environments through experiments with data from a bus manufacturer. The results indicate that the proposed policy reduces both holding and transportation costs without creating much stock-out risk.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6VF8-5246VCV-3/2/0aaa767e3d1a7e8c84d9c60a53d2b08d
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 131 (2011)
    Issue (Month): 2 (June)
    Pages: 595-603

    as in new window
    Handle: RePEc:eee:proeco:v:131:y:2011:i:2:p:595-603

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Multi-item dynamic lot-sizing Inbound shipments Single sourcing Delayed transportation policy;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Banerjee, Avijit, 2009. "Simultaneous determination of multiproduct batch and full truckload shipment schedules," International Journal of Production Economics, Elsevier, vol. 118(1), pages 111-117, March.
    2. Gerard Cachon, 2001. "Managing a Retailer's Shelf Space, Inventory, and Transportation," Manufacturing & Service Operations Management, INFORMS, vol. 3(3), pages 211-229, July.
    3. Swenseth, Scott R. & Godfrey, Michael R., 2002. "Incorporating transportation costs into inventory replenishment decisions," International Journal of Production Economics, Elsevier, vol. 77(2), pages 113-130, May.
    4. Çetinkaya, SIla & Bookbinder, James H., 2003. "Stochastic models for the dispatch of consolidated shipments," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 747-768, September.
    5. Qu, Wendy W. & Bookbinder, James H. & Iyogun, Paul, 1999. "An integrated inventory-transportation system with modified periodic policy for multiple products," European Journal of Operational Research, Elsevier, vol. 115(2), pages 254-269, June.
    6. Ertogral, Kadir, 2008. "Multi-item single source ordering problem with transportation cost: A Lagrangian decomposition approach," European Journal of Operational Research, Elsevier, vol. 191(1), pages 156-165, November.
    7. Michael J. Fry & Roman Kapuscinski & Tava Lennon Olsen, 2001. "Coordinating Production and Delivery Under a (z, Z)-Type Vendor-Managed Inventory Contract," Manufacturing & Service Operations Management, INFORMS, vol. 3(2), pages 151-173, August.
    8. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    9. Mustafa Çagri Gürbüz & Kamran Moinzadeh & Yong-Pin Zhou, 2007. "Coordinated Replenishment Strategies in Inventory/Distribution Systems," Management Science, INFORMS, vol. 53(2), pages 293-307, February.
    10. Leroy B. Schwarz & James E. Ward & Xin Zhai, 2006. "On the Interactions Between Routing and Inventory-Management Policies in a One-Warehouse N-Retailer Distribution System," Manufacturing & Service Operations Management, INFORMS, vol. 8(3), pages 253-272, September.
    11. Blackburn, Joseph D. & Kropp, Dean H. & Millen, Robert A., 1985. "MRP system nervousness: Causes and cures," Engineering Costs and Production Economics, Elsevier, vol. 9(1-3), pages 141-146, April.
    12. Pundoor, Guruprasad & Chen, Zhi-Long, 2009. "Joint cyclic production and delivery scheduling in a two-stage supply chain," International Journal of Production Economics, Elsevier, vol. 119(1), pages 55-74, May.
    13. Sila Çetinkaya & Chung-Yee Lee, 2000. "Stock Replenishment and Shipment Scheduling for Vendor-Managed Inventory Systems," Management Science, INFORMS, vol. 46(2), pages 217-232, February.
    14. Sven Axsäter, 2001. "A Note on Stock Replenishment and Shipment Scheduling for Vendor-Managed Inventory Systems," Management Science, INFORMS, vol. 47(9), pages 1306-1310, September.
    15. van Norden, Linda & van de Velde, Steef, 2005. "Multi-product lot-sizing with a transportation capacity reservation contract," European Journal of Operational Research, Elsevier, vol. 165(1), pages 127-138, August.
    16. Sundarakani, Balan & de Souza, Robert & Goh, Mark & Wagner, Stephan M. & Manikandan, Sushmera, 2010. "Modeling carbon footprints across the supply chain," International Journal of Production Economics, Elsevier, vol. 128(1), pages 43-50, November.
    17. Minner, Stefan, 2003. "Multiple-supplier inventory models in supply chain management: A review," International Journal of Production Economics, Elsevier, vol. 81(1), pages 265-279, January.
    18. Lee, Woon-Seek & Han, Jong-Han & Cho, Sung-Jin, 2005. "A heuristic algorithm for a multi-product dynamic lot-sizing and shipping problem," International Journal of Production Economics, Elsevier, vol. 98(2), pages 204-214, November.
    19. Guillermo Gallego & David Simchi-Levi, 1990. "On the Effectiveness of Direct Shipping Strategy for the One-Warehouse Multi-Retailer R-Systems," Management Science, INFORMS, vol. 36(2), pages 240-243, February.
    20. Morabito, Reinaldo & Morales, Silvia Regina & Widmer, João Alexandre, 2000. "Loading optimization of palletized products on trucks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(4), pages 285-296, December.
    21. M. Florian & J. K. Lenstra & A. H. G. Rinnooy Kan, 1980. "Deterministic Production Planning: Algorithms and Complexity," Management Science, INFORMS, vol. 26(7), pages 669-679, July.
    22. Rizk, Nafee & Martel, Alain & Ramudhin, Amar, 2006. "A Lagrangean relaxation algorithm for multi-item lot-sizing problems with joint piecewise linear resource costs," International Journal of Production Economics, Elsevier, vol. 102(2), pages 344-357, August.
    23. Kang, Jae-Hun & Kim, Yeong-Dae, 2010. "Coordination of inventory and transportation managements in a two-level supply chain," International Journal of Production Economics, Elsevier, vol. 123(1), pages 137-145, January.
    24. Van Eijs, M. J. G., 1994. "Multi-item inventory systems with joint ordering and transportation decisions," International Journal of Production Economics, Elsevier, vol. 35(1-3), pages 285-292, June.
    25. Mula, J. & Poler, R. & Garcia-Sabater, J.P. & Lario, F.C., 2006. "Models for production planning under uncertainty: A review," International Journal of Production Economics, Elsevier, vol. 103(1), pages 271-285, September.
    26. Cardos, Manuel & Garcia-Sabater, Jose P., 2006. "Designing a consumer products retail chain inventory replenishment policy with the consideration of transportation costs," International Journal of Production Economics, Elsevier, vol. 104(2), pages 525-535, December.
    27. Sawik, Tadeusz, 2009. "Coordinated supply chain scheduling," International Journal of Production Economics, Elsevier, vol. 120(2), pages 437-451, August.
    28. Randolph W. Hall, 1992. "A Note on Bounds for Direct Shipping Cost," Management Science, INFORMS, vol. 38(8), pages 1212-1214, August.
    29. Kiesmüller, G.P., 2009. "A multi-item periodic replenishment policy with full truckloads," International Journal of Production Economics, Elsevier, vol. 118(1), pages 275-281, March.
    30. Jung, Jung Woo & Lee, Young Hae, 2010. "Heuristic algorithms for production and transportation planning through synchronization of a serial supply chain," International Journal of Production Economics, Elsevier, vol. 124(2), pages 433-447, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Wang, Xuping & Ruan, Junhu & Shi, Yan, 2012. "A recovery model for combinational disruptions in logistics delivery: Considering the real-world participators," International Journal of Production Economics, Elsevier, vol. 140(1), pages 508-520.
    2. Aqlan, Faisal & Lam, Sarah S. & Ramakrishnan, Sreekanth, 2014. "An integrated simulation–optimization study for consolidating production lines in a configure-to-order production environment," International Journal of Production Economics, Elsevier, vol. 148(C), pages 51-61.
    3. Zhang, Zhi-Hai & Jiang, Hai & Pan, Xunzhang, 2012. "A Lagrangian relaxation based approach for the capacitated lot sizing problem in closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 140(1), pages 249-255.
    4. Ali, Agha Iqbal & O'Connor, Debra J., 2013. "Using truck-inventory-cost to obtain solutions to multi-period logistics models," International Journal of Production Economics, Elsevier, vol. 143(1), pages 144-150.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:131:y:2011:i:2:p:595-603. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.