IDEAS home Printed from https://ideas.repec.org/a/ids/ijisma/v11y2017i2-3p264-289.html
   My bibliography  Save this article

Impact of lead time reduction and fuel consumption on a two-echelon supply chain inventory with a subsidised price and pick-up policy

Author

Listed:
  • Ivan Darma Wangsa
  • Hui Ming Wee

Abstract

In this paper, the issue of vendor-buyer coordination in a supply chain involving a logistics provider has been investigated. The purpose is to analyse the impact of lead time reduction, fuel prices and fuel consumption of the fleet on the total cost incurred by the single vendor-buyer supply chain. We consider stochastic demand and the fact that fuel prices are subsidised and regulated by the government. The objective is to minimise the total cost incurred by a single vendor-buyer supply chain. Logistics costs are a function of weight, distance, fuel price and consumption with two load conditions: truckload (TL) and less-than-truckload (LTL) shipments. This paper develops two models based on the prevailing operating conditions: in the first model, the vendor delivers their product to the logistics provider; and in the second model, the logistics provider offers a pick-up policy. Numerical examples and sensitivity analyses are given to illustrate the results.

Suggested Citation

  • Ivan Darma Wangsa & Hui Ming Wee, 2017. "Impact of lead time reduction and fuel consumption on a two-echelon supply chain inventory with a subsidised price and pick-up policy," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 11(2/3), pages 264-289.
    • Handle: RePEc:ids:ijisma:v:11:y:2017:i:2/3:p:264-289
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=86215
    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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. Ganesh Kumar & R. Uthayakumar, 2019. "A two-echelon integrated inventory model under generalized lead time distribution with variable backordering rate," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(4), pages 552-562, August.

    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:ids:ijisma:v:11:y:2017:i:2/3:p:264-289. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=81 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.