Production And Shipment Lot Sizing In A Vendor-Buyer Supply Chain With Transportation Cost

Previous research on the joint vendor-buyer problem focused on the production shipment schedule in terms of the number and size of batches transferred between the two parties. It is a fact that transportation cost is a major part of the total operational cost. However, in most joint vendor-buyer models, the transportation cost is only considered implicitly as a part of fixed setup or ordering cost and thus is assumed to be independent of the size of the shipment. As such, the effect of the transportation cost is not adequately reflected in final planning decisions. There is a need for models involving transportation cost explicitly for better decision-making. In this study we analyze the vendor-buyer lot-sizing problem under equal-size shipment policy. We introduce the complete solution of the problem in an explicit and extended manner that has not existed in the literature. We incorporate transportation cost explicitly into the model and develop optimal solution procedures for solving the integrated models. All-unit-discount transportation cost structures with and without over declaration have been considered. Numerical examples are presented for illustrative purpose

The Joint Economic Lot Sizing Problem: Review And Extensions

With the growing focus on supply chain management, firms realize that inventories across the entire supply chain can be more efficiently managed through greater cooperation and better coordination. This paper presents a comprehensive and up-todate review of the joint economic lot sizing problem (JELP) and also provides some extensions of this important problem. In particular, detailed mathematical description of, and a unified framework for, the main JELP models are given. Additionally, a comparative empirical study of the main policies proposed for JELP is conducted. The focus of this study is on assessing the deviation of these policies from the optimal solution. Studying the performance of different models provides additional insights that will help in justifying their use in more complex supply chain models that involve more stages or other practical considerations of interest

Production And Shipment Lot Sizing In A Vendor-Buyer Supply Chain With Transportation Cost

Previous research on the joint vendor-buyer problem focused on the production shipment schedule in terms of the number and size of batches transferred between the two parties. It is a fact that transportation cost is a major part of the total operational cost. However, in most joint vendor-buyer models, the transportation cost is only considered implicitly as a part of fixed setup or ordering cost and thus is assumed to be independent of the size of the shipment. As such, the effect of the transportation cost is not adequately reflected in final planning decisions. There is a need for models involving transportation cost explicitly for better decision-making. In this study we analyze the vendor-buyer lot-sizing problem under equal-size shipment policy. We introduce the complete solution of the problem in an explicit and extended manner that has not existed in the literature. We incorporate transportation cost explicitly into the model and develop optimal solution procedures for solving the integrated models. All-unit-discount transportation cost structures with and without over declaration have been considered. Numerical examples are presented for illustrative purpose. (c) 2006 Elsevier B.V. All rights reserved

The Joint Economic Lot Sizing Problem: Review And Extensions

With the growing focus on supply chain management, firms realize that inventories across the entire supply chain can be more efficiently managed through greater cooperation and better coordination. This paper presents a comprehensive and up-todate review of the joint economic lot sizing problem (JELP) and also provides some extensions of this important problem. In particular, detailed mathematical description of, and a unified framework for, the main JELP models are given. Additionally, a comparative empirical study of the main policies proposed for JELP is conducted. The focus of this study is on assessing the deviation of these policies from the optimal solution. Studying the performance of different models provides additional insights that will help in justifying their use in more complex supply chain models that involve more stages or other practical considerations of interest

Production And Shipment Lot Sizing In A Vendor-Buyer Supply Chain With Transportation Cost

Previous research on the joint vendor-buyer problem focused on the production shipment schedule in terms of the number and size of batches transferred between the two parties. It is a fact that transportation cost is a major part of the total operational cost. However, in most joint vendor-buyer models, the transportation cost is only considered implicitly as a part of fixed setup or ordering cost and thus is assumed to be independent of the size of the shipment. As such, the effect of the transportation cost is not adequately reflected in final planning decisions. There is a need for models involving transportation cost explicitly for better decision-making. In this study we analyze the vendor-buyer lot-sizing problem under equal-size shipment policy. We introduce the complete solution of the problem in an explicit and extended manner that has not existed in the literature. We incorporate transportation cost explicitly into the model and develop optimal solution procedures for solving the integrated models. All-unit-discount transportation cost structures with and without over declaration have been considered. Numerical examples are presented for illustrative purpose

Production And Shipment Lot Sizing In A Vendor-Buyer Supply Chain With Transportation Cost

Previous research on the joint vendor-buyer problem focused on the production shipment schedule in terms of the number and size of batches transferred between the two parties. It is a fact that transportation cost is a major part of the total operational cost. However, in most joint vendor-buyer models, the transportation cost is only considered implicitly as a part of fixed setup or ordering cost and thus is assumed to be independent of the size of the shipment. As such, the effect of the transportation cost is not adequately reflected in final planning decisions. There is a need for models involving transportation cost explicitly for better decision-making. In this study we analyze the vendor-buyer lot-sizing problem under equal-size shipment policy. We introduce the complete solution of the problem in an explicit and extended manner that has not existed in the literature. We incorporate transportation cost explicitly into the model and develop optimal solution procedures for solving the integrated models. All-unit-discount transportation cost structures with and without over declaration have been considered. Numerical examples are presented for illustrative purpose. (c) 2006 Elsevier B.V. All rights reserved