Multi-level inventory management decisions with transportation cost consideration
Madadi,A. Kurz,M.E. Ashayeri,J.
Madadi,A.
Kurz,M.E.
Ashayeri,J.
Abstract
In this article we address specific inventory management decisions with transportation cost consideration in a multi-level environment consisting of a supplier–warehouse–retailers. We develop two models – namely, decentralized ordering model and centralized ordering model to investigate the effect of collective ordering by retailers on the total inventory cost of the system. A numerical study shows that the proposed model is robust and generates reasonable cost savings. The models have potential in several multi-level applications such as fresh or frozen food delivery to stores of different supermarkets or the supply of medicine to a number of hospitals from a wholesaler.
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Date
2010
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Research Projects
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Citation
Madadi, A, Kurz, M E & Ashayeri, J 2010, 'Multi-level inventory management decisions with transportation cost consideration', Transportation Research Part E-Logistics and Transportation Review, vol. 46, no. 5, pp. 719-734.