Synchronization of inventory and transportation under flexible vehicle constraint: A heuristics approach using sliding windows and hierarchical tree structure
This paper investigates the integrated inventory and transportation planning under flexible vehicle constraint. To offer better services at lower prices, more and more companies turn to outsource transportation functions to other professional service providers, namely 3rd party logistics companies. Under these vehicle rental arrangements, the number of vehicles is a decision variable instead of a fixed number, and the transportation cost includes not only the delivery cost but also the cost of vehicle rental that is proportional to the number of vehicles rented in a given planning horizon. In this paper, the problem is formulated as a mixed integer programming problem. A heuristic algorithm is developed, in which sliding windows are applied to approximate the problem by repeatedly solving a series of overlapping short-term subproblems, and a hierarchical tree structure is used to evaluate the closeness of different groups of retailers. Numerical experiments show that a better tradeoff between the inventory cost and transportation cost can be achieved through the proposed heuristic algorithm.
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.
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.
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.:
- Hall, Randolph W., 1985. "Determining vehicle dispatch frequency when shipping frequency differs among suppliers," Transportation Research Part B: Methodological, Elsevier, vol. 19(5), pages 421-431, October.
- Bertazzi, Luca & Grazia Speranza, Maria, 1999. "Inventory control on sequences of links with given transportation frequencies," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 261-270, March.
- Baita, Flavio & Ukovich, Walter & Pesenti, Raffaele & Favaretto, Daniela, 1998. "Dynamic routing-and-inventory problems: a review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(8), pages 585-598, November.
- Bertazzi, Luca & Speranza, Maria Grazia & Ukovich, Walter, 1997. "Minimization of logistic costs with given frequencies," Transportation Research Part B: Methodological, Elsevier, vol. 31(4), pages 327-340, August.
- S. Viswanathan & Kamlesh Mathur, 1997. "Integrating Routing and Inventory Decisions in One-Warehouse Multiretailer Multiproduct Distribution Systems," Management Science, INFORMS, vol. 43(3), pages 294-312, March.
- S. Anily & A. Federgruen, 1990. "One Warehouse Multiple Retailer Systems with Vehicle Routing Costs," Management Science, INFORMS, vol. 36(1), pages 92-114, January.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:192:y:2009:i:3:p:824-836. 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.