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An integrated model for stock replenishment and shipment scheduling under common carrier dispatch costs

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  • Mutlu, Fatih
  • Çetinkaya, SIla

Abstract

We 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.

Suggested Citation

  • Mutlu, Fatih & Çetinkaya, SIla, 2010. "An integrated model for stock replenishment and shipment scheduling under common carrier dispatch costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 844-854, November.
    • Handle: RePEc:eee:transe:v:46:y:2010:i:6:p:844-854
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    Citations

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    Cited by:

    1. Gürler, Ülkü & Alp, Osman & Büyükkaramikli, Nasuh Çağdaş, 2014. "Coordinated inventory replenishment and outsourced transportation operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 400-415.
    2. Peng, Xiaoshuai & Zhang, Lele & Thompson, Russell G. & Wang, Kangzhou, 2023. "A three-phase heuristic for last-mile delivery with spatial-temporal consolidation and delivery options," International Journal of Production Economics, Elsevier, vol. 266(C).
    3. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. 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.
    5. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.
    6. Wei, Bo & Çetinkaya, Sıla & Cline, Daren B.H., 2023. "Inbound replenishment and outbound dispatch decisions under hybrid shipment consolidation policies: An analytical model and comparison," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    7. Zhang, Yuankai & Sun, Lijun & Hu, Xiangpei & Zhao, Chen, 2019. "Order consolidation for the last-mile split delivery in online retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 309-327.
    8. Raden Achmad Chairdino Leuveano & Mohd Nizam Ab Rahman & Wan Mohd Faizal Wan Mahmood & Chairul Saleh, 2019. "Integrated Vendor–Buyer Lot-Sizing Model with Transportation and Quality Improvement Consideration under Just-in-Time Problem," Mathematics, MDPI, vol. 7(10), pages 1-25, October.
    9. E. Ursavas & Stuart X. Zhu, 2018. "Integrated Passenger and Freight Train Planning on Shared-Use Corridors," Service Science, INFORMS, vol. 52(6), pages 1376-1390, December.
    10. 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.
    11. Sadeghi, Javad & Mousavi, Seyed Mohsen & Niaki, Seyed Taghi Akhavan & Sadeghi, Saeid, 2014. "Optimizing a bi-objective inventory model of a three-echelon supply chain using a tuned hybrid bat algorithm," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 274-292.
    12. Christine Nguyen & Alejandro Toriello & Maged Dessouky & James E. Moore, 2013. "Evaluation of Transportation Practices in the California Cut Flower Industry," Interfaces, INFORMS, vol. 43(2), pages 182-193, April.

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