IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v63y2012i7p920-930.html
   My bibliography  Save this article

Integrating transportation and production: an international study case

Author

Listed:
  • L Bertazzi

    (University of Brescia, Brescia, Italy)

  • O Zappa

    (Mesdan S.p.A., Italy)

Abstract

The problem we study is inspired by the real case of Mesdan S.p.A., an Italian company worldwide leader in the textile machinery sector, which has two production units with two warehouses, one located in Italy (Brescia) and the other in China (Foshan). The critical point in this logistic system is the integration between production and transportation management, given the long distance between Brescia and Foshan. Shipments are performed by the means of different types of vehicles with different unit costs and significantly different lead times. Variable production costs, variable and fixed transportation costs and, possibly, inventory costs are charged in the objective function. Different production policies are compared. Our aim is to determine integrated policies that minimize the total cost of the system. We formulate integer linear programming models for the solution of these problems, and we solve the real instance and carry out a sensitivity analysis of the optimal solution.

Suggested Citation

  • L Bertazzi & O Zappa, 2012. "Integrating transportation and production: an international study case," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(7), pages 920-930, July.
  • Handle: RePEc:pal:jorsoc:v:63:y:2012:i:7:p:920-930
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/jors/journal/v63/n7/pdf/jors201178a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/jors/journal/v63/n7/full/jors201178a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Parcell, Joseph L. & Schroeder, Ted C., 2007. "Hedonic Retail Beef and Pork Product Prices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(01), April.
    2. Chib, Siddhartha, 1993. "Bayes regression with autoregressive errors : A Gibbs sampling approach," Journal of Econometrics, Elsevier, vol. 58(3), pages 275-294, August.
    3. Avi Goldfarb & Qiang Lu & Sridhar Moorthy, 2009. "Measuring Brand Value in an Equilibrium Framework," Marketing Science, INFORMS, vol. 28(1), pages 69-86, 01-02.
    4. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    5. Ludwig Von Auer & John Brennan, 2007. "Bias and inefficiency in quality-adjusted hedonic regression analysis," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 95-107.
    6. Srinivasan, V. Seenu & Park, Chan Su & Chang, Dae Ryun, 2005. "An Approach to the Measurement, Analysis, and Prediction of Brand Equity and Its Sources," Research Papers 1685r2, Stanford University, Graduate School of Business.
    7. Ernst R. Berndt & Neal J. Rappaport, 2001. "Price and Quality of Desktop and Mobile Personal Computers: A Quarter-Century Historical Overview," American Economic Review, American Economic Association, vol. 91(2), pages 268-273, May.
    8. Chib, Siddhartha & Greenberg, Edward, 1995. "Hierarchical analysis of SUR models with extensions to correlated serial errors and time-varying parameter models," Journal of Econometrics, Elsevier, vol. 68(2), pages 339-360, August.
    9. Ludwig Auer, 2007. "Hedonic price measurement: the CCC approach," Empirical Economics, Springer, vol. 33(2), pages 289-311, September.
    10. Nelson, Randy A & Tanguay, Tim L & Patterson, Christopher D, 1994. "A Quality-Adjusted Price Index for Personal Computers," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(1), pages 23-31, January.
    11. Hjorth-Andersen, Chr, 1984. " The Concept of Quality and the Efficiency of Markets for Consumer Products," Journal of Consumer Research, Oxford University Press, vol. 11(2), pages 708-718, September.
    12. V. Srinivasan & Chan Su Park & Dae Ryun Chang, 2005. "An Approach to the Measurement, Analysis, and Prediction of Brand Equity and Its Sources," Management Science, INFORMS, vol. 51(9), pages 1433-1448, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:63:y:2012:i:7:p:920-930. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.