An integrated model for stock replenishment and shipment scheduling under common carrier dispatch costs
AbstractWe examine a joint inventory replenishment and shipment scheduling problem that arises in the context of a vendor-managed inventory (VMI) arrangement. Since a temporal shipment consolidation policy is being implemented, the inventory requirements at the vendor are affected by the timing and quantity of shipment release. The vendor's problem is to determine an integrated policy for inventory replenishment and shipment release and to set its parameters. We develop analytical models for computing such integrated policies where it is economical to use common carriage for outbound transportation. We propose algorithmic approaches to set the optimal policy parameter values.
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Bibliographic InfoArticle provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.
Volume (Year): 46 (2010)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description
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- Mutlu, Fatih & Çetinkaya, Sıla, 2013. "Pricing decisions in a carrier–retailer channel under price-sensitive demand and contract-carriage with common-carriage option," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 28-40.
- Nguyen, H.N. & Rainwater, C.E. & Mason, S.J. & Pohl, E.A., 2014. "Quantity discount with freight consolidation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 66(C), pages 66-82.
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