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Integrated inventory and transportation mode selection: A service parts logistics system

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  • Kutanoglu, Erhan
  • Lohiya, Divi

Abstract

We present an optimization-based model to gain insights into the integrated inventory and transportation problem for a single-echelon, multi-facility service parts logistics system with time-based service level constraints. As an optimization goal we minimize the relevant inventory and transportation costs while ensuring that service constraints are met. The model builds on stochastic base-stock inventory model and integrates it with transportation options and service responsiveness that can be achieved using alternate modes (namely slow, medium and fast). The results obtained through different networks show that significant benefits can be obtained from transportation mode and inventory integration.

Suggested Citation

  • Kutanoglu, Erhan & Lohiya, Divi, 2008. "Integrated inventory and transportation mode selection: A service parts logistics system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 665-683, September.
    • Handle: RePEc:eee:transe:v:44:y:2008:i:5:p:665-683
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    Citations

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    Cited by:

    1. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    2. Gürler, Ülkü & Alp, Osman & Büyükkaramikli, Nasuh Çağdaş, 2014. "Coordinated inventory replenishment and outsourced transportation operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 400-415.
    3. Ashayeri, Jalal & Ma, Ning & Sotirov, Renata, 2015. "The redesign of a warranty distribution network with recovery processes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 184-197.
    4. Dreyfuss, Michael & Giat, Yahel, 2017. "Optimal spares allocation to an exchangeable-item repair system with tolerable wait," European Journal of Operational Research, Elsevier, vol. 261(2), pages 584-594.
    5. Jun Wang & Jingbo Yin & Rafi Ullah Khan & Siqi Wang & Tie Zheng, 2021. "A Study of Inbound Logistics Mode Based on JIT Production in Cruise Ship Construction," Sustainability, MDPI, vol. 13(3), pages 1-18, February.
    6. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    7. Christopher A. Boone & Benjamin T. Hazen & Joseph B. Skipper & Robert E. Overstreet, 2018. "A framework for investigating optimization of service parts performance with big data," Annals of Operations Research, Springer, vol. 270(1), pages 65-74, November.
    8. Wang, Wenbin & Syntetos, Aris A., 2011. "Spare parts demand: Linking forecasting to equipment maintenance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1194-1209.
    9. Lejeune, Miguel A., 2013. "Probabilistic modeling of multiperiod service levels," European Journal of Operational Research, Elsevier, vol. 230(2), pages 299-312.
    10. Mosca, Alyssa & Vidyarthi, Navneet & Satir, Ahmet, 2019. "Integrated transportation – inventory models: A review," Operations Research Perspectives, Elsevier, vol. 6(C).
    11. Boliang Lin & Jiaxi Wang & Huasheng Wang & Zhongkai Wang & Jian Li & Ruixi Lin & Jie Xiao & Jianping Wu, 2017. "Inventory-transportation integrated optimization for maintenance spare parts of high-speed trains," PLOS ONE, Public Library of Science, vol. 12(5), pages 1-18, May.
    12. Juman, Z.A.M.S. & Hoque, M.A., 2014. "A heuristic solution technique to attain the minimal total cost bounds of transporting a homogeneous product with varying demands and supplies," European Journal of Operational Research, Elsevier, vol. 239(1), pages 146-156.
    13. Kazemi Zanjani, Masoumeh & Nourelfath, Mustapha, 2014. "Integrated spare parts logistics and operations planning for maintenance service providers," International Journal of Production Economics, Elsevier, vol. 158(C), pages 44-53.
    14. Dong, Chuanwen & Transchel, Sandra & Hoberg, Kai, 2018. "An inventory control model for modal split transport: A tailored base-surge approach," European Journal of Operational Research, Elsevier, vol. 264(1), pages 89-105.
    15. Ma, N., 2014. "Optimal scope of supply chain network & operations design," Other publications TiSEM e6187708-b664-44bf-aef8-f, Tilburg University, School of Economics and Management.
    16. Tavakoli Kafiabad, Shayan & Zanjani, Masoumeh Kazemi & Nourelfath, Mustapha, 2022. "Robust collaborative maintenance logistics network design and planning," International Journal of Production Economics, Elsevier, vol. 244(C).
    17. Tempelmeier, Horst & Bantel, Oliver, 2015. "Integrated optimization of safety stock and transportation capacity," European Journal of Operational Research, Elsevier, vol. 247(1), pages 101-112.

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