Integrated Inventory-Distribution Planning in a (1 : N) Supply Chain System with Heterogeneous. Vehicles Incorporated

Eun-Seok Kim; Ik Sun Lee
November 2011
International Journal of Management Science (12260797);Nov2011, Vol. 17 Issue 2, p1
Academic Journal
This paper considers an integrated inventory-distribution system with a fleet of heterogeneous vehicles employed where a single warehouse distributes a single type of products to many spatially distributed retailers to satisfy their dynamic demands. The problem is to determine order planning at the warehouse, and also vehicle schedules and delivery quantities for the retailers with the objective of minimizing the sum of ordering cost at the warehouse, inventory holding cost at both the warehouse and retailers, and transportation cost. For the problem, we give a Mixed Integer Programming formulation and develop a Lagrangean heuristic procedure for computing lower and upper bounds on the optimal solution value. The Lagrangean dual problem of finding the best Lagrangrean lower bound is solved by subgradient optimization. Computational experiments on randomly generated test problems showed that the suggested algorithm gives relatively good solutions in a reasonable amount of computation time.


Related Articles

  • SUPPLY CHAIN FACULTY.  // Logistics & Transport Focus;Apr2008, Vol. 10 Issue 4, p64 

    The article reports on a seminar on capable supply chain, held at Unipart Expert Practices in England. Areas of discussion included the history, development and characteristics of lean and agile philosophies; process capability or signal rating; and the origin and operation of Jaguar Global...

  • Value-Addition in the Textile Supply Chain. Parkes, David // Colourage;Apr2008, Vol. 55 Issue 4, p37 

    The article discusses markets in Europe that provide value-addition in the textile supply chain. The two markets recommended in the article include Turkey for technical innovation and Italy for flexibility and diversification. Moreover, it asserts that knowledge and experience determine...

  • Building integrity into your supply chain. Wallace, Janelle // Keeping Good Companies (14447614);Sep2009, Vol. 61 Issue 8, p502 

    The article discusses the steps that can be taken to establish integrity in a supply chain. It highlights the benefits of building a sustainable supply chain (SSC). It explains the influence of exposure and risk level, views on sustainability and resources on the sophistication of SSC. The...

  • Physical Distribution Service in Industrial Purchase Decisions. Perreault Jr, William D.; Russ, Frederick A. // Journal of Marketing;Apr1976, Vol. 40 Issue 2, p3 

    The article reports on industrial decision making as it relates to physical distribution services and purchasing behavior. The author focuses on the results of a mail survey, presented to 400 purchasing managers, which was designed to investigate levels of consumer satisfaction with regards to...

  • Mining the Internet of Things: Detection of False-Positive RFID Tag Reads using Low-Level Reader Data. Keller, Thorben // University of St. Gallen, Business Dissertations;5/13/2011, p1 

    The notion of the "Internet of Things" (IoT) describes the vision of ubiquitous sensor technologies that seamlessly link arbitrary physical objects to their digital counterparts in the network. In recent years, it was particularly the rapid diffusion of Radio Frequency Identification (RFID) in...

  • How to reel in the big cheese. Williams, Hugh // Food Manufacture;Dec2008, Vol. 83 Issue 12, p29 

    The article presents some fundamental facts that put supply chain in the toolkit of solutions. The author says that the trick in managing products in the right perspective is to balance its sales, inventories, and costs. He avers that a business can only reduce stocks or costs once it...

  • A PROBABILITY BASED MODEL FOR EVALUATING DELIVERY PERFORMANCE. Guiffrida, Alfred L. // Journal of the Academy of Business & Economics;2009, Vol. 9 Issue 3, p95 

    In this paper we present three approximation methods for evaluating delivery performance to the final customer in a supply chain. The approximation methods presented are easier to implement than the current set of delivery performance models found in the literature which require advanced...

  • OUT OF THE VEHICLE AND INTO THE BOARDROOM. Isom, David // Supply Chain Europe;Sep2009, Vol. 18 Issue 5, p36 

    The article discusses how vehicle tracking helps to make right business operational decisions. It mentions that tracking technology enables a company with a mobile workforce to look closely at how their vehicles are being operated at the most efficient way. It adds that a tracking programme...

  • An Algorithm Research for Supply Chain Management Optimization Model. Ruomeng Kong; Chengjiang Yin // International Journal of Advanced Computer Science & Application;May2014, Vol. 5 Issue 5, p147 

    In this paper, we consider the extended linear complementarity problem on supply chain management optimization model. We first give a global error bound for the extended linear complementarity problem, and then propose a new type of algorithm based on the error bound estimation. Both the global...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics