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A consolidated delivery policy of multiple suppliers for a single buyer

Author

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  • Taebok Kim
  • Suresh Kumar Goyal

Abstract

The development of a well-structured supply chain should simultaneously take into account both inventory-related costs and transportation costs to minimise the overall operating cost. A buyer's lot-sizing decision affects all suppliers' inventory and transportation costs as well as its own operating cost. First of all, it is valuable to perform a structured analysis dealing with the conflicts between a buyer and a group of suppliers. Secondly, the coordination issue among the suppliers should be dealt with. The purpose of this study is to investigate how the transportation cost affects the joint lot-sizing policy in a multiple-supplier-single-buyer supply chain. In this study, it is assumed that the transportation cost is proportional to the fleet size utilised to deliver the buyer's requested order quantity. We first model the joint decision-making problem, develop the solution procedure and then finally propose the profit-sharing mechanism.

Suggested Citation

  • Taebok Kim & Suresh Kumar Goyal, 2009. "A consolidated delivery policy of multiple suppliers for a single buyer," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 2(3), pages 267-287.
    • Handle: RePEc:ids:ijpman:v:2:y:2009:i:3:p:267-287
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    Citations

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    Cited by:

    1. Chan, Chi Kin & Lee, Y.C.E. & Campbell, J.F., 2013. "Environmental performance—Impacts of vendor–buyer coordination," International Journal of Production Economics, Elsevier, vol. 145(2), pages 683-695.
    2. Lee, Y.C.E. & Chan, Chi Kin & Langevin, A. & Lee, H.W.J., 2016. "Integrated inventory-transportation model by synchronizing delivery and production cycles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 68-89.
    3. Danielis, Romeo & Maggi, Elena & Rotaris, Lucia & Valeri, Eva, 2012. "Urban supply chains and transportation policies," Working Papers 12_7, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    4. Beatrice Marchi & Simone Zanoni & Mohamad Y. Jaber, 2020. "Improving Supply Chain Profit through Reverse Factoring: A New Multi-Suppliers Single-Vendor Joint Economic Lot Size Model," IJFS, MDPI, vol. 8(2), pages 1-16, April.
    5. Danielis, Romeo & Maggi, Elena & Rotaris, Lucia & Valeri, Eva, 2012. "Urban supply chains and transportation policies," Working Papers 1207, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2012.
    6. Beck, Fabian G. & Glock, Christoph H. & Kim, Taebok, 2017. "Coordination of a production network with a single buyer and multiple vendors with geometrically increasing batch shipments," International Journal of Production Economics, Elsevier, vol. 193(C), pages 633-646.
    7. Wen-Tsung Ho & Shu-Fang Lai & Yun-Kuei Huang, 2014. "An Optimal Mixed Batch Shipment Policy for Multiple Items in a Single-Supplier Multiple-Retailer Integrated System," Journal of Optimization Theory and Applications, Springer, vol. 160(2), pages 636-658, February.
    8. Glock, Christoph H., 2012. "Coordination of a production network with a single buyer and multiple vendors," International Journal of Production Economics, Elsevier, vol. 135(2), pages 771-780.
    9. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.
    10. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.

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