The freight allocation problem with all-units quantity-based discount: A heuristic algorithm
This paper studies a problem encountered by a buying office for one of the largest retail distributors in the world. An important task for the buying office is to plan the distribution of goods from Asia to various destinations across Europe. The goods are transported along shipping lanes by shipping companies, which offer different discount rates depending on the freight quantity. To increase the reliability of transportation, the shipper imposes a quantity limit on each shipping company on each shipping lane. To guarantee a minimum business volume, each shipping company requests a minimum total freight quantity over all lanes if it is contracted. The task involves allocating projected demand of each shipping lane to shipping companies subject to the above conditions such that the total cost is minimized.
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.
Volume (Year): 40 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
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.:
- Crama, Y. & Pascual J., R. & Torres, A., 2004. "Optimal procurement decisions in the presence of total quantity discounts and alternative product recipes," European Journal of Operational Research, Elsevier, vol. 159(2), pages 364-378, December.
- Chen, Frank Y. & Krass, Dmitry, 2001. "Analysis of supply contracts with minimum total order quantity commitments and non-stationary demands," European Journal of Operational Research, Elsevier, vol. 131(2), pages 309-323, June.
- Chauhan, Satyaveer Singh & Proth, Jean-Marie, 2003. "The concave cost supply problem," European Journal of Operational Research, Elsevier, vol. 148(2), pages 374-383, July.
- Sawik, Tadeusz, 2010. "Single vs. multiple objective supplier selection in a make to order environment," Omega, Elsevier, vol. 38(3-4), pages 203-212, June.
- Schotanus, Fredo & Telgen, Jan & de Boer, Luitzen, 2009. "Unraveling quantity discounts," Omega, Elsevier, vol. 37(3), pages 510-521, June.
- Benton, W. C. & Park, Seungwook, 1996. "A classification of literature on determining the lot size under quantity discounts," European Journal of Operational Research, Elsevier, vol. 92(2), pages 219-238, July.
- Xia, Weijun & Wu, Zhiming, 2007. "Supplier selection with multiple criteria in volume discount environments," Omega, Elsevier, vol. 35(5), pages 494-504, October.
- Goossens, D.R. & Maas, A.J.T. & Spieksma, F.C.R. & van de Klundert, J.J., 2007. "Exact algorithms for procurement problems under a total quantity discount structure," European Journal of Operational Research, Elsevier, vol. 178(2), pages 603-626, April.
- Chung, Chia-Shin & Hum, Sin-Hoon & Kirca, Omer, 1996. "The coordinated replenishment dynamic lot-sizing problem with quantity discounts," European Journal of Operational Research, Elsevier, vol. 94(1), pages 122-133, October.
- Jiefeng Xu & Leonard Lu & Fred Glover, 2000. "The deterministic multi-item dynamic lot size problem with joint business volume discount," Annals of Operations Research, Springer, vol. 96(1), pages 317-337, November.
- Burke, Gerard J. & Carrillo, Janice & Vakharia, Asoo J., 2008. "Heuristics for sourcing from multiple suppliers with alternative quantity discounts," European Journal of Operational Research, Elsevier, vol. 186(1), pages 317-329, April.
- Rubin, Paul A. & Benton, W. C., 2003. "Evaluating jointly constrained order quantity complexities for incremental discounts," European Journal of Operational Research, Elsevier, vol. 149(3), pages 557-570, September.
When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:40:y:2012:i:4:p:415-423. 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: (Shamier, Wendy)
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.